Now SNP U-turn over refunding cash to donors after shamed Peter Murrell's £400k embezzlement

Published: 18:45, 10 July 2026 | Updated: 18:45, 10 July 2026 The SNP has finally offered to repay donors whose £667,000 was supposedly ring-fenced to bankroll a second independence referendum. Leader John Swinney had insisted that the party didn’t have enough money to return the cash after spending some of the funds and Nicola Sturgeon’s husband, former chief executive Peter Murrell, embezzling £400,000. Now after a leading lawyer claimed that the SNP’s position was untenable, bosses have crumbled and made a humiliating U-turn. The case against the party is ’nigh on irresistible’, according to an opinion prepared by Roddy Dunlop KC, and could leave it facing a bill exceeding £1m. Roddy Dunlop KC prepared an opinion which said the SNP's position on refunding donors was untenable Now, only weeks after the First Minister said donors would not be repaid, the SNP has invited applications. A spokesman said: 'A small number of donors to this independence campaign requested refunds and all those making a legitimate request received a full refund. 'Anyone else who donated and wishes their money back can request a refund by contacting the SNP.' Last night, Scottish Conservative deputy leader Rachael Hamilton said: ‘This is a desperate and panicked U-turn from the SNP, who only changed their position after a damning legal opinion exposed the scale of the mess they have created. Former SNP chief executive Peter Murrell was sentenced to more than five years in jail after admitting to embezzling £400,000 from the party 'John Swinney insisted donors couldn't be repaid, yet now the SNP are frantically rowing back because they know the pressure is mounting and serious questions won't disappear. 'This rotten scandal goes right to the heart of the SNP's culture of secrecy and cover-up. 'A full parliamentary inquiry into its murky finances is now unavoidable, so the public can finally get the truth about how this money was handled and who knew what.' The disputed funds were raised in 2017 and 2019, with donors promised that their contributions would be ring-fenced for future referendum campaigns. But concerns over what had happened to the money led to Police Scotland’s Operation Branchform, which uncovered Murrell’s unrelated theft of funds, for which he was jailed for more than five years last month. Asked in May if donors would be refunded, Mr Swinney said: 'We don't have that money, it's been stolen from us.' First Minister John Swinney said the party did not have enough cash to refund donors' money That mirrored the line of his predecessor Humza Yousaf, who insisted in 2023: 'We’re not reimbursing people for the donations that they have made.' But last month, Mr Swinney admitted that some of the ring-fenced funds had been spent on 'ongoing activities’, which led to calls for detectives to reopen their fraud investigation. Meanwhile, Mr Dunlop - dean of the Faculty of Advocates - was instructed by veteran independence campaigner Stuart Campbell, who published the legal advice on his blog Wings Over Scotland. The legal opinion was that a class action civil claim against the SNP would almost certainly succeed. Mr Dunlop wrote: 'On or about 3 June 2026… John Swinney publicly confirmed that the ring-fenced referendum funds had been applied to “the ongoing activities of the Scottish National Party”. 'As I see it, this constitutes an unequivocal admission that the trust funds were diverted from their stated purpose.’ He added: 'On the assumed facts, the civil claim for fraudulent breach of trust is, in my opinion, nigh on irresistible. 'The trust was created; it was breached; the breach was dishonest; and the donors have suffered loss in the amount of their unrefunded donations.' Mr Dunlop said claimants would be entitled to a full refund plus interest, which would likely double the sum owed by the SNP. Scottish Labour deputy leader Jackie Baillie said: 'The SNP have attempted to defy reality for weeks by burying their heads in the sand and acting like there is nothing to answer for about this scandal. 'The truth is that people donated money in good faith to the SNP for independence campaigning which was spent on other activities, and hundreds of thousands of pounds were embezzled by Peter Murrell. 'This money was used to enable Murrell and Nicola Sturgeon to enjoy a lavish lifestyle for years. 'There are serious questions to be answered by John Swinney and the SNP about this scandal, and their desperate attempts to look the other way won't wash with the public. 'Swinney must come clean now and tell us what he knew and when about this affair - and he should agree to an inquiry so that these vital issues can be examined.’ Westminster’s powerful Scottish Affairs Committee is still weighing up whether to open an investigation into the affair and has called for a joint probe with Holyrood, but the SNP and Greens have voted down a bid to secure the co-operation of the Scottish Parliament.