Taxpayer-funded legal aid 'loophole' that helped Peter Murrell faces axe

By TOM GORDON, SCOTTISH DAILY MAIL DEPUTY POLITICAL EDITOR Published: 19:46, 21 July 2026 | Updated: 19:46, 21 July 2026 A legal aid ‘loophole’ that helped Peter Murrell could be closed by SNP ministers in a shake-up of the system. The Scottish Government has launched a consultation on legal aid reform that includes the ‘clawback’ of payments. Murrell qualified for means-tested legal support for his SNP embezzlement case because his £700,000 property and pension assets had been frozen by prosecutors. But because there is no clawback of criminal legal aid in Scotland - unlike in England and Wales - the former party chief executive does not have to repay it once they are unfrozen. In Scotland, only civil legal aid can be recovered if the recipient is able to pay. The consultation asks if future clawback arrangements should be ‘made more consistent across all types of legal aid’. Peter Murrell in court as he is jailed for embezzling SNP funds Police officers outside the home of Peter Murrell as he was investigated Scottish Tory justice spokesman Stephen Kerr said: ‘This is a welcome step forward from the SNP, but it comes far too late. ‘Cases like Peter Murrell’s exposed just how badly broken Scotland’s legal aid system has become. ‘Hard-working taxpayers should never be left picking up the bill for people with substantial assets who can afford to pay their own legal costs. ‘Yet that’s exactly the mess the SNP have allowed to develop. ‘Ministers must now close these loopholes for good and restore confidence in a system that has been badly undermined on the SNP’s watch.’ Scotland’s legal aid system cost a record £169 million in 2024/25 and involved 170,000 grants in areas such as criminal defence, family law, housing, debt, and civil disputes. The three-month consultation is to inform a new Legal Aid (Scotland) Bill aimed at creating a service which is simpler and more responsive to need and changes in the justice system. Those who ’can afford to make a contribution to their legal aid costs should do so’, it said. Murrell, 61, was jailed for over five years last month for embezzling £400,000 from the SNP between 2010 and 2022, when he was its top official and married to Nicola Sturgeon. The consultation highlighted how clawbacks ‘vary across different types of legal aid’ as a result of evolving policy ‘rather than a clear and consistent framework’. It said: ‘There is no repayment requirement in criminal legal aid, while in civil cases the rules around repayment depend on the type of assistance provided. ‘In some cases, the full cost of legal aid may be recovered from money or property preserved or recovered; in others, no repayment may be required. ‘The proposed Bill provides an opportunity to establish a clearer, fairer and more consistent framework for repayment.’ Bill Moyes, chair of the Scottish Legal Aid Board, which administers the payments, said: ‘We are pleased this consultation includes the main areas we have publicly said are important, including a review of current powers in criminal legal aid to recover (clawback) any assets that may be released at the end of a case to offset legal aid costs.’ Scottish Labour justice spokesman Pauline McNeill said: ‘It is important that we have a legal aid system that is fit for the future.’ The new Bill will create a framework for legal aid rather than specify details of how it will be applied, leaving ministers free to supply rules as and when needed. A Government spokesman said: ‘Part of the planned reforms is a review of financial arrangements, including contributions and repayment arrangements, to ensure they are fair, transparent, and deliver value for money for the public purse.’ Law Society of Scotland president Serena Sutherland said: ‘The problems in legal aid are deep rooted and long standing. ‘The current arrangements make it unsustainable for many solicitors to provide legal aid funded advice to people who need their help. The system itself is fiendishly complex and confusing to navigate. ‘These legal aid reforms must rise to the challenge.’ SNP minister for victims and community safety Kirsten Oswald said: ‘This consultation marks an important step in shaping the future of legal aid informed by the experience of those who rely on the system and the expertise of those who deliver it. I encourage all those with an interest to share their views.’