Scottish Labour sinks into the red as donations dry up Donations in 2018 declined by 77 per cent compared with the year before

Scottish Labour sunk into the red last year as donations dried up and the party battled internal splits and confusion over its position on Brexit, according to its financial accounts.

The figures, revealed ahead of the party’s spring conference in Dundee this weekend, show that donations declined by almost 77 per cent in 2018 compared with the year before.

“The party’s position on Brexit is failing Labour’s core support” The i politics newsletter cut through the noise Email address is invalid Email address is invalid Thank you for subscribing! Sorry, there was a problem with your subscription. Labour source

They totalled just £35,555 compared to £152,690 in 2017, contributing to a 65 per cent fall in income that drove the party £32,452 into the red at the end of 2018.

The party said the decline could be explained by the fact that there was no election campaign last year, but insiders said donors were “deserting in their droves” due to the party’s Brexit stance.

Despite campaigning for Remain ahead of 2016’s referendum, both Jeremy Corbyn and Scottish Labour leader Richard Leonard have said the result of the vote should be respected.

Mr Leonard has come in for particular criticism for following Mr Corbyn’s lead on Brexit, given that 62 per cent of Scots voted to stay in the EU.

A week ago he said he would prefer a negotiated Brexit to a second referendum on the issue – but admitted he would campaign for Remain again if there was another vote.

At the weekend, one of the country’s top trade union leaders, Gary Smith of the GMB, said Mr Leonard’s tactic of “riding on the coat-tails” of the UK leader was a “recipe for failure”. The GMB is a major Labour donor.

‘Deserting in their droves’

A Labour source said: “Just like our members, donors are deserting in their droves.

“Gary Smith is not the first person to point out the party’s position on Brexit is failing Labour’s core support, of which there is precious little left.

“When the party has nothing pro-business to say and fails to rise to meet the biggest issue of our times, it’s little wonder donors are keeping their hands firmly in their pockets.”

However, another party source denied this, saying the weaker financial position was “just a natural consequence of being on an election footing outside of an election period”.

A party spokesman added: “This was the first year since 2013 that Scottish Labour hadn’t been fighting either an election or a referendum campaign, and our membership has almost doubled since the independence referendum.

“Since 2017, we’ve been on an election footing because we need to get rid of this shambolic and cruel Tory Government, and when an election is finally called we will be ready to fight and win.

“Unlike the Tories, we’re not a party backed by and for big businesses and millionaires, we’re proud of being a people-powered movement funded by lots of smaller donations and trade union members.”