A Scottish social care charity has become embroiled in a dispute with one of Glasgow City Council’s arms’ length external organisations over a £690,000 dilapidations claim.
For over two decades, Turning Point Scotland operated the 218 service in Glasgow, which supported women in the justice system and was delivered under contract with the council and funded accordingly.
Following the closure of the service in February 2024, Turning Point Scotland was told to pay over £800,000 by City Property Glasgow Investments (CPGI) for “extensive disrepair and rent arrears”.
The charity said that following a review, CPGI reduced the bill to around £690,000, adding that it remained, nonetheless, “wholly disproportionate”.
“The initial £805,322 claim illustrates the severity of the financial pressures facing the sector and even the revised figure places an exceptionally heavy and unreasonable burden on charitable services at a time when resources are already stretched,” the charity said in a statement.
Earlier this month, Scottish parliament member and Labour MSP for Dumbarton Jackie Baillie said the charity faced an “existential funding crisis” over the claim.
In the year to March 2025, Turning Point Scotland reported a total income of £48.2m and costs of £50.1m.
Legitimacy of charge questionned
Turning Point Scotland questioned the “legitimacy of imposing any dilapidations charge on a building owned and supplied by a local authority, particularly when all funding provided by that authority – and more – was used entirely for its intended purpose”.
It said the situation it faces goes beyond one organisation and has “wider implications for the social care sector”.
“Applying strict commercial standards to not-for-profit service providers risks undermining essential support for vulnerable people across Glasgow, including those experiencing homelessness, alcohol and other drug-related challenges and justice involvement,” it said.
“Every pound diverted to meet disproportionate property claims is a pound taken away from frontline services that communities rely on.”
The charity argued that when Glasgow City Council chose to decommission the 218 service, it fulfilled all contractual obligations and vacated the premises in good faith.
In addition, the charity said it invested over £1.2m in maintenance and improvements, exceeding the funding provided, to ensure the property remained compliant, safe and welcoming for the women it supported and staff.
“Despite this, CPGI has raised a substantial claim alleging extensive disrepair and rent arrears following our departure, which we believe to be untrue and unreasonable,” it said.
Bill risks diverting resources from beneficiaries
Turning Point Scotland said it has attempted to resolve the issue several times, but has seen its requests for discussion or mediated dialogue repeatedly rejected.
Chief executive Neil Richardson said: “CPGI have repeatedly referenced our other leases, which has been perceived as a thinly veiled threat.
“This is inappropriate and unprofessional, particularly given the essential services Turning Point Scotland provides to vulnerable people in those properties.
“Turning Point Scotland is once again proposing a constructive route forward, including independent mediation, board engagement and a review of the wider public impact to reach a fair and responsible resolution.
“The aim is not only to resolve this dispute but to ensure that future partnerships between the public and third sectors remain viable and grounded in the principles of public good, transparency and equality.”
A spokesperson for CPGI told Civil Society: “City Property’s process follows standard industry practice, with a qualified surveyor inspecting the property to identify any breaches of the lease contract and the landlord’s proposed remedy, which can include the associated cost of the repairs.
“The issue of a terminal dilapidations schedule is a standard and routine part of commercial lease management and dilapidations aren’t a ‘bill’, with the schedule acting as a notification of a tenant’s potential liabilities.
“Negotiations are ongoing and whilst we await a response from Turning Point Scotland’s appointed surveyor, it would be inappropriate to comment any further at this time on a commercial transaction.”
