THE row over Scottish Labour’s finances continued yesterday, with supporters of Jeremy Corbyn rejecting suggestions the UK leader was to blame for a precipitous fall in donations.

The Herald revealed on Wednesday that Scottish Labour’s finances slumped in 2016, when Mr Corbyn was re-elected leader and Kezia Dugdale had her first year in charge in Scotland.

Accounts published for today’s Scottish Labour conference in Perth showed donations at a seven-year low and reserves at a 16-year low.

Read more: Jeremy Corbyn blamed for huge fall in Scottish Labour's funding

In 2015, the party had a £1m income, £592,000 in donations, and a £98,000 surplus.

Last year income was £400,000, donations £105,000, and there was a £104,000 deficit.

Campaign spending on the Holyrood election was 59 per cent down on the 2011 election.

Scottish Labour sources immediately blamed Mr Corbyn for turning off donors, but this was rejected by other senior party figures who, unlike Ms Dugdale, backed Mr Corbyn for leader.

MSP Elaine Smith said: “I don’t buy it. We have a huge membership [under Mr Corbyn]. So I don’t accept that as a reason.

Read more: Jeremy Corbyn blamed for huge fall in Scottish Labour's funding

“There’s been a lot of anti-Jeremy rhetoric in the media of late and what the party should do north and south of the border is stop that and give people good news about Labour.”

Another party source added sarcastically: “We’re polling around 25 per cent in England. We’re polling 14 per cent here. Aye, it’s Jeremy to blame. If we had the same membership we had under Ed Miliband and Jim Murphy we’d be bankrupt.”

Squeezed by the SNP and Tories, and struggling to be heard on the constitution, delegates are today expected to adopt federalism as Scottish Labour policy.

Read more: Jeremy Corbyn blamed for huge fall in Scottish Labour's funding

MP Ian Murray said: “This is an historic moment for our party. The party of devolution now ready to seize the mantle as the party of federalism.”