SNP accounts show deficit of more than £800,000

First Minister and SNP leader Humza Yousaf has made changes to the way his party records donations

The SNP made a loss of more than £800,000 last year after its income and membership dropped, its accounts show.

It is the second biggest deficit the party has recorded - and its largest in a year with no parliamentary election.

SNP membership fell from the 104,000 it had two years ago to 72,000 in March - although the accounts said the number had risen to about 74,000 in June.

Its membership income fell from £2,516,854 in 2021 to £2,286,944 in 2022.

And its reportable donations fell from £695,351 to £368,538, with the party recording a total loss of £804,278.

• SNP submits annual accounts to Electoral Commission

• SNP says its membership has fallen to 72,000

• Labour Party spent more than Tories in 2022

In the accounts, the SNP said "neither this deficit, nor the balance sheet are out of keeping with other years in which nationwide elections were fought", with council elections having taken place across Scotland in 2022.

However, the party added: "It will be important to seek to return the party to surplus in 2023 as we build towards the next general election."

First Minister Humza Yousaf insisted the SNP was on a "steady footing".

He accepted that the party had been through some "pretty difficult" months, but said he had "steadied the ship".

"We plan to make sure we build on our financial situation," he said, adding that SNP members were the "biggest asset the party has".

The Electoral Commission publishes annual accounts of all parties that spend more than £250,000.

Only the Conservatives recorded a larger deficit then the SNP with £2.38m in the red. The Scottish Conservatives do not publish accounts.

Scottish Labour had a loss of £123,787 while the Scottish Liberal Democrats had a surplus of about £291,287.

The Scottish Greens had a deficit of £28,191 while Alba had a surplus of £17,425.

Race against time

SNP treasurer Stuart McDonald blamed the cost of living crisis for the drop in party membership, and said it was important to "return the party to surplus in 2023 as we build towards the next general election".

He added: "Like every membership organisation today, we face challenges and uncertainty in the face of rising inflation and the cost of living crisis which impacts on our members."

The Electoral Commission report also showed the SNP ended 2022 with a negative balance of almost £220,000, and its accumulated reserves fell from £584,649 to negative £219,629.

The SNP had faced a race against time to file its accounts ahead of the Electoral Commission deadline after appointing new auditors in May.

The firm that previously carried out had quit in the autumn of last year.

A Police Scotland investigation into SNP finances and funding, codenamed Operation Branchform, is ongoing.

Former First Minister Nicola Sturgeon, her husband and ex-party chief executive Peter Murrell and former treasurer Colin Beattie have all been arrested as part of the inquiry before later being released without charge pending further investigations.

Mr Murrell gave the party a loan of £107,620 in June 2021 - half of which was repaid by October of that year.

The SNP accounts show Mr Murrell is still owed £60,000.