UK Labour are propping up the Scottish branch office amid plummeting income and a failure to pay staff salaries, it has emerged.
The Scottish group’s latest accounts showed that revenue had dropped from £2.1 million in 2024 to £1.5m last year – despite former leader Anas Sarwar gearing up for the Holyrood election where he had hoped to become first minister.
Scottish Labour paid no staff salaries, the accounts noted, because the costs were picked up by the UK party.
In a note explaining the party’s lack of expenditure on staff, the accounts said: “In 2025 the Scottish Labour Party did not make a contribution to any employees' salary costs (2024: four employees) all other staff costs were paid by the National Labour Party.”
The party had met the staff costs of four employees in 2024, with the remainder being funded by the main UK operation based in London, the previous year's filing showed.
The UK party has also pledged “financial assistance” to the Scottish branch to allow it to remain a “going concern”.
A note said: “In consideration of the available reserves as at December 31, 2025 and the budgeted results for the subsequent accounting period the Labour Party has confirmed that it will provide financial assistance to the Scottish Labour Party as required to allow the Scottish Labour Party to meet its liabilities as they fall due, for a period of at least 12 months from the date of signing of the financial statements.
“Based upon the undertaking of financial support outlined above the treasurer has a reasonable expectation that the party has adequate resources to continue its activities for the foreseeable future. Accordingly, the treasurer has adopted the going concern basis in preparing the financial statements.”
The party did not publish its membership numbers in the accounts, though income from “membership and subscription fees” grew from £72,693 to £75,495.
Scottish Labour also increased its reserves from £698,684 to £825,661 over the course of the last year.
The UK Labour Party saw its outgoings of £47.1m outstrip income by around £2.5m.
Sarwar led Scottish Labour to their worst-ever Holyrood result in May, with the party reduced to just 17 seats in the Scottish Parliament.
Despite previously ruling out a seat in the House of Lords, he was later ennobled and made a minister in Andy Burnham's government.
A leadership contest is now under way to replace him.
The National understands that Scottish Labour's core staff are always employed at a UK level and additional staff are funded by the Scottish party based on need.
