THE SNP has been forced to reassure donors that almost £500,000 raised to fight a second referendum campaign will be frozen in the party’s accounts until it is needed.

The move came after the Herald reported the SNP had ditched a dedicated £1m fundraising drive through its ref.scot website in the wake of the general election.

It led to questions about the fate of the £482,000 raised by June 8, when the cash drive had 10 days left to run.

Reaed more: Tommy Sheppard withdraws from race to become SNP's new Westminster leader

The website, launched within minutes of Nicola Sturgeon announcing her second referendum plan in March, had been trying to generate £1m in 100 days.

The Herald:

However the donations page suddenly vanished after election, when the SNP lost 21 of the 56 seats it won in 2015.

Its disappearance coincided with Ms Sturgeon admitted her referendum plan had "undoubtedly” been a factor in the “bitterly disappointing” losses, and she would reflect carefully on it.

Asked for an explanation of the website change, the party issued a terse one-line statement, saying: “Our fundraising efforts were focused on the general election."

Read more: SNP abandons £1m fundraising appeal for second referendum

Scottish Labour demanded the Electoral Commission investigate whether money raised by the SNP for a second referendum had instead been spent on the election.

Scottish Labour business manager James Kelly said: "This is a major scandal engulfing the Nationalists, which could have lasting consequences. They need to come clean, and fast.

"It was perfectly clear that their fundraising was for a second independence referendum.

“If they are now claiming it was for General Election fundraising then they have misled the public, and that is incredibly serious.

"This requires an urgent statement from SNP bosses, and I have written to the Electoral Commission to call for an investigation.

"Nicola Sturgeon was sent a clear message in last week's election to drop her plans for a divisive second referendum and get back to the day job."

The Herald:

The ref.scot website was promoted by Ms Sturgeon’s husband, Peter Murrell, the chief executive of the SNP, on behalf of the party.

After initially referring to the election, the SNP subsequently attempted to clarify its position with a more expansive statement and denied ref.scot money had been spent on the election.

An SNP spokesman said: “The funding that was raised during the period of the ref.scot crowdfunder will only be used for the specific purpose of a referendum campaign.

Reaed more: Tommy Sheppard withdraws from race to become SNP's new Westminster leader

“In that regard, the money is earmarked. The money spent in the General Election campaign was taken from our general election appeal.”

There is a precedent for the SNP raising money for a specific cause then freezing it.

During the 2010 Westminster election, the party ran a dedicated appeal for a legal challenge against the BBC after being shut out a TV leaders debate.

The case was dismissed after a two-day hearing at the Court of Session in Edinburgh.

The Herald:

The SNP’s accounts later showed it raised £43,874 for the case and spent £41,617, leaving a difference of £2257, which stayed untouched in a "restricted reserve” fund.

The Electoral Commission said it was a matter for parties how they spent their funds.

Read more: SNP abandons £1m fundraising appeal for second referendum

In 2012, Scottish Tory leader Ruth Davidson launched the Conservative Friends of the Union campaign to oppose independence, which raised around £250,000.

Despite the name, the money was simply absorbed into general Tory party funds.