Swinney Reveals SNP May Have Illegally Reclaimed Tax on Murrell’s Fraudulent Spending

First Minister John Swinney has acknowledged that the Scottish National Party (SNP) might have unlawfully reclaimed value-added tax on illicit items purchased by its former chief executive, Peter Murrell, as part of a £400,000 embezzlement scheme.

During First Minister’s Questions, Scottish Labour leader Anas Sarwar challenged Swinney regarding whether VAT had been improperly reclaimed on goods acquired using party funds. Over a twelve-year period, Murrell, who is the estranged husband of former First Minister Nicola Sturgeon, utilized party money to purchase a variety of personal items, including vehicles, a motorhome, cosmetics, and gaming consoles.

Swinney informed the chamber that the party had formally written to Her Majesty’s Revenue and Customs (HMRC) due to concerns that the embezzlement could have significant tax implications. He stated that the SNP was engaging with UK tax authorities to guarantee the "highest levels of financial governance."

Sarwar pointed out that while political parties are permitted to reclaim VAT on certain legitimate expenses, Murrell had manipulated invoices to misrepresent personal purchases as business costs. Specific examples cited by the Labour leader included a £124,550 motorhome, a £3,070 robotic lawnmower, and a £23.98 egg poacher. Sarwar estimated that VAT claims could represent 20% of these transactions, though he admitted it remained uncertain whether the SNP would have been entitled to reclaim such amounts.

Describing the Murrell case as the "biggest political and financial scandal in the history of the Scottish Parliament," Sarwar condemned what he termed a "culture of secrecy and cover-up" within the SNP. He argued that a parliamentary inquiry was unquestionably necessary.

Scottish Conservative leader Russell Findlay also sought confirmation that Murrell had not accessed public funds. Swinney reassured him that the SNP had alerted HMRC to the potential for fraudulent tax claims. However, the First Minister reiterated his stance against a formal parliamentary inquiry, asserting that a police investigation constituted the "most forensic and thorough examination possible." Swinney emphasized that Murrell had not misappropriated "policy development" grants from the Electoral Commission, citing a statement from the watchdog which indicated no evidence of such misuse.

Following the parliamentary session, Swinney told reporters that while he was unsure of the exact amount the party might owe tax authorities, he was "very confident" in the SNP’s ability to make any necessary repayments.

Additionally, Swinney confirmed that the party’s national executive committee had approved legal action to recover the stolen funds. In a correspondence with party members, Swinney announced that the SNP would seek compensation under the Proceeds of Crime Act for the total sum of £400,310.65. He also revealed plans for civil proceedings, which would serve as a backup if criminal courts do not result in full recovery.

Murrell’s legal representatives recently indicated that the former chief executive possesses sufficient assets to repay the embezzled amount. However, if a confiscation order is issued by the state, those funds would be directed to the government rather than the party. The SNP intends to recover its losses through a separate compensation order from the courts.

Addressing concerns about party integrity, Swinney stated, "I take the good financial management of the Scottish National Party incredibly seriously and I am confident that we now have high standards of financial governance, with appropriate checks and balances in place."

In his letter to members, which was reviewed by BBC Scotland, Swinney noted a substantial rise in donations from party members since Murrell pleaded guilty last Monday. He provided a "personal assurance that every penny that is raised by the SNP will be spent on our efforts to secure Scottish independence."

Meanwhile, former SNP treasurer Douglas Chapman, who resigned in 2021 after alleging insufficient information to perform his duties, claimed that individuals who raised concerns about party finances had been "vilified."

Source: BBC News Generated at: 2026-06-04 14:33:13 UTC