First Minister and SNP leader Humza Yousaf has made changes to the way his party records donations The Scottish National Party (SNP) incurred a loss of over £800,000 in
the past year due to a decline in income and membership, as revealed by its financial report.
This marks the second largest deficit ever recorded by the party, and the largest in a year without a parliamentary election.
The SNP's membership dropped from 104,000 two years ago to 72,000 in March, although the report states that the number had risen to around 74,000 by June.
Membership income decreased from £2,516,854 in 2021 to £2,286,944 in 2022.
Additionally, reportable donations fell from £695,351 to £368,538, resulting in an overall loss of £804,278.
SNP Submits Annual Financial Report to Electoral Commission SNP Acknowledges Membership Drop to 72,000 Labour Party Outspent Tories in 2022 The financial report noted that "neither this deficit nor the balance sheet deviate significantly from other years in which nationwide elections were contested," referring to the council elections held across Scotland in 2022.
However, the party emphasized the importance of returning to a surplus in 2023 as preparations are made for the upcoming general election.
First Minister Humza Yousaf affirmed that the SNP's financial standing remains solid.
He acknowledged that the party had experienced challenging months but assured that he had "stabilized the situation."
"We are focused on improving our financial position," he said, highlighting SNP members as the "party's greatest asset."
The Electoral Commission releases annual financial reports for parties that spend over £250,000.
Among these reports, only the Conservative Party reported a larger deficit than the SNP, with a deficit of £2.38 million. The Scottish Conservatives do not disclose their financial reports.
Scottish Labour reported a loss of £123,787, while the Scottish Liberal Democrats recorded a surplus of approximately £291,287.
The Scottish Greens faced a deficit of £28,191, while the Alba Party had a surplus of £17,425.
Racing Against Time SNP Treasurer Stuart McDonald attributed the decline in party membership to the cost of living crisis, emphasizing the need to "return the party to surplus in 2023 as we build towards the next general election."
He added, "Like all membership organizations today, we confront challenges and uncertainties arising from rising inflation and the cost of living crisis, which directly impact our members."
The Electoral Commission report also indicated that the SNP concluded 2022 with a negative balance of nearly £220,000, and its accumulated reserves decreased from £584,649 to a negative £219,629.
The SNP faced a race against time to submit its financial report before the Electoral Commission deadline after appointing new auditors in May.
The firm that had previously conducted the audit had resigned in the previous autumn.
An ongoing investigation by Police Scotland into SNP finances and funding, referred to as Operation Branchform, remains active.
Former First Minister Nicola Sturgeon, her husband and former party chief executive Peter Murrell, and former treasurer Colin Beattie were all detained as part of the investigation, but were subsequently released without charges pending further inquiries.
In June 2021, Mr. Murrell provided the party with a loan of £107,620, half of which was repaid by October of the same year.
The SNP financial report indicates that Mr. Murrell is still owed £60,000. Photo by ScottishPolitico, Wikimedia commons.