The Scottish National Party (SNP) has announced it will repay donors whose £667,000 was designated for a second independence referendum, marking a significant U-turn after initial resistance.
This change in stance comes after a legal opinion stated that the party's refusal to refund the money was "untenable." The funds were raised between 2017 and 2019, with donors assured their contributions would be ring-fenced for future referendum campaigns. However, concerns about the money's whereabouts led to Police Scotland's Operation Branchform, which uncovered the unrelated embezzlement of approximately £400,000 by former SNP chief executive Peter Murrell. Murrell was recently sentenced to over five years in prison for this crime.
Initially, party leader John Swinney stated that the SNP did not have sufficient funds to return the money, citing that some had been spent on "ongoing activities" and that a portion had been embezzled. His predecessor, Humza Yousaf, had also insisted in 2023 that donations would not be reimbursed.
However, a legal opinion prepared by Roddy Dunlop KC, published by independence campaigner Stuart Campbell, concluded that the SNP's position was legally indefensible. The opinion suggested that a civil claim against the party for fraudulent breach of trust would "almost certainly succeed," potentially costing the SNP over £1 million with accrued interest.
"On the assumed facts, the civil claim for fraudulent breach of trust is, in my opinion, nigh on irresistible," Dunlop wrote, adding that claimants would be entitled to a full refund plus interest. He noted that Swinney's public confirmation in June 2026 that the funds had been applied to "the ongoing activities of the Scottish National Party" constituted an "unequivocal admission that the trust funds were diverted from their stated purpose."
A spokesperson for the SNP confirmed that a small number of donors had requested refunds and that all legitimate requests had been met. They also stated that anyone else who donated and wishes to request a refund can do so by contacting the party.
Scottish Conservative deputy leader Rachael Hamilton described the move as a "desperate and panicked U-turn," asserting that the party only changed its position after the legal opinion exposed the extent of the problem. She called for a full parliamentary inquiry into the SNP's finances.
Scottish Labour deputy leader Jackie Baillie criticized the SNP's "attempts to defy reality" and reiterated calls for Swinney to clarify what he knew about the matter and when. She also urged Swinney to agree to an inquiry.
Westminster's Scottish Affairs Committee is reportedly considering whether to open an investigation and has proposed a joint probe with the Scottish Parliament, though a bid to secure parliamentary cooperation has been voted down by the SNP and Greens.