How Peter Murrell can afford to repay SNP embezzlement

So just how did the self-dubbed “man with the money” come to hold a modest wealth that allows him to repay the SNP in full?

The wealth he has built is largely down to SNP employment. John Swinney, while in his first spell as SNP leader, appointed his childhood friend Murrell as chief executive in 2001.

That decision made Murrell one of the most powerful unelected men in Scottish politics, overseeing a party with around 70 million flowing through its accounts over a 20-year period.

But it also allows Murrell to settle a six-figure debt with the wealth from a party that employed him for more than two decades.

His lawyer, John Scullion KC, told the High Court of Edinburgh during sentencing that Murrell intends to repay the embezzled sum in full.

Pressed by judge Lord Young on whether sufficient funds existed to cover it, Scullion confirmed it did, and that the money was under Murrell’s sole control.

Nicola Sturgeon and husband Peter Murrell (Image: Newsquest)

In salary alone, Murrell had been paid close to £2 million between 2001 and 2023, with a reported salary of £104,492 in 2011, falling to £79,750 by 2021.

Ms Sturgeon had a gross income of £140,496 in 2021-22, and together the couple were able to purchase a four-bedroom home in Uddingston, a leafy suburb on the outskirts of Glasgow.

The Proceeds of Crime Act 2002 will kickstart the repayment process with a hearing in September, and from there, the SNP can look to get its money back.

We know that from Peter Murrell’s assets, his share of the marital home is listed to the value of £88,632. While it is only Murrell’s assets that can be used to repay the embezzled sum, Ms Sturgeon is almost certain to be forced to sell her Uddingston home.

Murrell also has £613,496.04 in two Legal and General pension funds thanks to two decades of employment from the SNP.

The first 25% of his pension pot – approximately £153,374.01 – can be withdrawn tax free, while the remaining £460,122.03 will be treated as taxable income in the year of withdrawal.

A basic rate of income tax could be applied to it, meaning he would lose around £7,540, leaving him with a pension fund of more than £500,000.

If the court does not decide to uprate the amount Murrell owes with inflation, that could leave him with enough money to live comfortably.

The £124,000 luxury motorhome Murrell purchased with SNP cash is also listed as his asset, although the campervan had depreciated to around £45,000 last year.

Murrell’s assets raise questions as to how he was able to be granted taxpayer-funded legal aid. With the case avoiding trial, the sum paid to his KC and junior counsel could be around £30,000.

But Murrell also had a 12.5% share in a Portugal villa he shared with his sister Lynn and family friends.

The property was sold last year, months after he was granted legal aid, with Murrell reportedly pocketing £50,000 from the sale of the villa, according to the Telegraph.

The questions that are likely to go unanswered, though, are why early concerns around Murrell were never addressed.

Had they been, Murrell’s offending could have been spotted sooner, saving the SNP a lengthy court battle and hundreds of thousands of pounds.

First Minister John Swinney (Image: PA)

Before becoming chief executive, Murrell had worked for the SNP for a number of years, including as Alex Salmond’s aide when he was MP for Banff and Buchan.

It is here that allegations of Murrell’s wrongdoing first emerged. Kenny MacAskill, former justice secretary under Mr Salmond.

"Alex let him off with his earlier sins," MacAskill said. "Some money went missing and Alex decided to cover it and move him on."

That points to a pattern of behaviour that the SNP’s internal structures never adequately scrutinised, until it was far too late.

Scullion, meanwhile, painted a portrait of a man already broken by his own conduct.

His client had "lived in almost total isolation" since entering his guilty plea, he told the court, withdrawing from social contact to the detriment of his health. "He does not consider himself worthy of sympathy. His humiliation will endure. His future appears bleak and solitary."

It was a closing submission designed to invoke sympathy. It did little to soften Lord Young’s approach to sentencing, with Murrell facing more than five years behind bars. And it is likely to do little to soften the financial blow facing Murrell.

The SNP is now pursuing every available legal route to recover what Murrell took.

The “man with the money” put the SNP close to financial ruin, but it is his wealth that could help build the party back to financial stability.