Social Bridging Finance: a new Scottish model for financing public service design and delivery?

Abstract

In the UK, some devolved governments such as in Scotland have taken a distinctive approach to implementing public service reforms. In this article, we explore the key enablers and constraints of outcome-based initiatives at the sub-national level. Drawing on a formative evaluation of the delivery of the Social Bridging Finance model, this study contributes to understanding results-oriented funding models and pluralist governance in welfare services beyond Scotland in three key ways. First, it emphasises the critical role of independent, multi-year grant funding in enabling more equitable and collaborative relationships between public bodies and the third sector. By reducing financial risk, such mechanisms challenge traditional state-led financing models. Second, it highlights the dual role of contractual agreements - supporting early sustainability discussions but revealing limitations when legal enforceability is weak. This points to the relevance of informal and relational accountability in outcome-based commissioning. Third, the study identifies the importance of collaboratively developed success criteria. The diverse experiences revealed in this study emphasise the need for flexibility, shared ownership, and continuous learning - particularly given public sector responsibility for service continuity.