How the SNP's finances would be hit by losing third party status in the general election

The SNP could face losing more than £1 million of short money if it fails to retain its third-party status.

Having won 48 MPs at the previous 2019 general election, according to the Electoral Calculus predictions, the party could lose more than half of its seats, with some forecasts predicting as few as 15.

This result would be a hammer blow to the party’s finances, with short money – the funds given to opposition parties – awarded based on seats and votes won.

Scottish First Minister John Swinney will be hoping his party can maintain third party status. Picture: PA

The amount payable to qualifying parties is £21,438.33 for every seat won, plus £42.821 for every 200 votes gained by the party. There is then a total amount payable for travel of £235,511.46, which is divided between each opposition party in the same proportion.

For the SNP, they were scheduled to receive £1,301,552.04 for the year 2023/24, based on the party’s number of MPs. However, being replaced by Labour as the biggest party in Scotland would lead to this amount plummeting.

Short money is intended to help opposition parties through additional support, making it easier for their MPs to undertake parliamentary duties. The financial allocation is used to hire and pay for staff, researchers and for travel expenses.

John Swinney’s party has previously faced questions about its own finances, with its most recent published accounts reporting an annual loss of £804,278.

The SNP also owes Peter Murrell, the former SNP chief executive and Nicola Sturgeon’s husband, £60,000 of a £107,620 loan he made in June 2021, which the party explained was to assist with “cash flow” issues after the most recent Holyrood election.

In April, Mr Murrell was charged with embezzlement of funds from the SNP.

Developed and introduced during the Harold Wilson government of 1974 to 1976, short money – so called due to the minister who introduced the scheme, Edward Short – is the common name for public money handed to opposition parties in Westminster.

Short money is available to any parliamentary party not in the government that secured either two seats, or one seat and more than 150,000 votes overall, at the previous general election. It does not extend to those who refuse to swear the oath of allegiance, so parties such as Sinn Fein do not receive the money.