Support organisations are being put out of business amid rising energy costs, a local social enterprise hub has warned.
The Circle, which operates in Glasgow and Dundee, has been forced to close one of its two premises in Dundee after bills surged by 400% over the past 18 months.
Founder and CEO Kirsty Thomson has warned that charities and support organisations are struggling due to soaring bills.
She told STV News: “The money that we are pulling in should be for the benefit of our communities.
“And right now, because of the cost of energy and the rising cost of energy, that money is going right back out there to the energy companies.
“For me, it’s a misalignment of finances. It’s not the way that we should be spending money.”
The Circle staff moved into the Michelin Scotland Innovation Parc just a year ago and are now facing layoffs.
She added: “Unfortunately, the twin pressures of rising heating costs and the challenge of repurposing, repairing, and renovating a listed building mean that it is not economically viable to continue with this property.
“Terminating the MSIP lease will allow us to focus on fully developing operations for our tenants at Dundee’s Dudhope Castle and our hub in Easterhouse, Glasgow.”
Some of the charities and groups the Circle supported within the former Michelin social club are also having to relocate.
Ms Thomson said: “The current challenging economic conditions mean this mission is even more critical. Small businesses, start-ups, and charities are under growing pressure from the energy and cost of living crises.”
“The government right across the UK needs to be looking at how finances are being spent in asset locked organisations such as ours.
“It is completely wrong that we are being financed to, in turn, pay energy companies, so that massively needs to change.”
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