Scottish First Minister Humza Yousaf has told Sky News it will be “difficult” to meet a 31 May deadline for filing SNP accounts – meaning the party could miss out on £1.2m in public funds.

The SNP’s Westminster group could lose access to the “short money” paid to opposition parties if it fails to submit accounts by the end of next month.

Asked if the party would have to lay off staff if the short money was not paid, Mr Yousaf said: “Hopefully we won’t get to that situation.

“Let’s hope we can work something out that even if that deadline is not met – and we’ll work hard to meet that deadline – even if it’s not met, there is a way of still getting access [to the short money] if auditors are appointed.”

The SNP has been embroiled in a scandal over its finances leading to some high profile arrests.

Police Scotland is carrying out an investigation linked to the spending of £600,000 raised by independence supporters to be used in a new campaign to leave the UK.

It is understood there have been complaints the ringfenced cash may have been used improperly by being spent elsewhere.

As the SNP struggles to recruit replacement auditors, how much worse will the crisis get?

Who is at the centre of the police investigation into the SNP?

Why have senior SNP executives been arrested and what are police investigating?

Both the party’s treasurer, Colin Beattie, and its former chief executive, Nicola Sturgeon’s husband Peter Murrell, were arrested as part of the probe – though both were released without charge.

And detectives seized a £100,000 motorhome from outside the home of one of Mr Murrell’s elderly relatives.

It was also revealed that the party’s accountants quit six months ago and a replacement has yet to be found.

Mr Beattie resigned as treasurer following his arrest, with MP Stuart McDonald announced as his replacement.

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Mr Yousaf said the SNP was making “some progress” finding new auditors, adding the party’s finances were on a “steady footing”.

The first minister wouldn’t confirm how much money the SNP still owes Mr Murrell – who loaned the party over £100,000 – but said outstanding loans would be detailed when the party’s accounts are published.

He also said he hadn’t spoken to Ms Sturgeon, but was sure she would return to Holyrood “when the time is absolutely right”.

Mr Yousaf was speaking after a 25 minute meeting in Westminster with Prime Minister Rishi Sunak, in which the two men discussed cost of living, independence and Scottish whiskey tariffs.

The Scottish first minister described the meeting as “constructive”, and said he was also given a briefing on the situation in Sudan.

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