Dundee’s charities have appealed to the council to be transparent in their decision making and not agree to major cash awards behind closed doors.
They think the public should have been admitted to this week’s debate that resulted in £5 million being given to the V&A, at a time when funding to charities is set to be cut by £1m.
The £5m in cash and kind over the next 10 years is linked to the V&A’s application Heritage Lottery funding, which was approved on Friday.
SNP administration leader Ken Guild said the matter had to be discussed in private because of commercial considerations.
Opposition councillors were unimpressed and now the city’s charity and voluntary sector have added their criticism.
Morna Wilson, chief executive of Dundee Voluntary Action (DVA), said: “At a time of difficult decision making about funding in the city, it is vital that these decisions are made in public.”
On February 13 councillors will be asked to approve cuts of almost £1m to charities, including to those providing welfare and money advice services, supporting adults with learning needs, disabilities, mental health problems and homelessness, and services to vulnerable children including those with disabilities, care leavers and young carers.
Council officers have agreed to work in close partnership with the third sector in an effort to avoid future cuts, but for 2014-15 the charities fear the writing is already on the wall.
The DVA chief executive added: “While we recognise the much-needed benefit that the V&A will bring to the city, it is unclear how an application to the Heritage Lottery Fund could have been made without prior approval by Dundee City Council for its contribution.”
Third Sector Interface supports, develops and represents third sector, voluntary and community organisations.
The city council must make savings of £7.6m next year to balance the budget and continue to freeze the council tax, and the SNP administration has pledged there will be no impact on frontline operations and no compulsory redundancies.
The savings include £3.7m from the revenue budget and the biggest cut is £935,000 from a 3% reduction in grants to outside bodies that already receive more than £100,000 from the authority.