Nicola Sturgeon is among senior figures accused of “misfeasance” in former first minister Alex Salmond’s fresh legal action against the Scottish government.
Mr Salmond took the government to court in 2019 and was awarded £512,000 over its mishandling of harassment complaints against him.
The former SNP leader – who was first minister between 2007 and 2014 – was subsequently cleared of sexual assault charges in a separate criminal trial in 2020.
The Alba Party leader is now alleging “misfeasance” by civil servants and is seeking damages and loss of earnings in what he said will be a “day of reckoning for the Scottish government”.
The Alex Salmond v Scottish ministers case called at the Court of Session on Friday.
The public officials and ministers named in the action include former permanent secretary Leslie Evans, ex-chief of staff Liz Lloyd, and former first minister Nicola Sturgeon.
In a statement after the case called, Mr Salmond said “not one single person has been held accountable” for what he described as a “tawdry business” – which included a judicial review, criminal trial and Holyrood inquiry.
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He said he had “done my talking in court or in front of parliament” and would continue to do so.
Mr Salmond added: “Despite Lord Pentland’s findings in the Court of Session that the behaviour of the former permanent secretary and her officials was ‘unlawful’, ‘unfair’ and ‘tainted by apparent bias’, despite the ongoing police and Crown Office enquiries into the criminal leaks and potential perjury at the criminal trial, despite the astonishing revelations of misfeasance contained in the eventual publication of the government’s own legal advice, and despite the specific findings of the parliamentary inquiry into the conduct of the former permanent secretary and the former first minister, not one single person has been held accountable.
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“With this court action that evasion of responsibility ends.”
Image: Alba Party leader Mr Salmond pictured in August
Mr Salmond said he would delay the progression of the case – known as sisting – to allow criminal investigations into alleged leaking and perjury to take place.
But he added: “However, the calling of the action signals that the day of reckoning for the Scottish government’s record of misfeasance on this grand scale will inevitably come.”
Mr Salmond was investigated by the Scottish government after two complaints from staff were made under a new complaints procedure which included former ministers.
The investigation was deemed by a judicial review to have been “tainted with apparent bias” after the Scottish government conceded defeat and Mr Salmond was awarded £512,000 as a result.
He was subsequently cleared of more than a dozen charges of sexual misconduct – including attempted rape – following a trial at the High Court in Edinburgh.
A Holyrood inquiry into the Scottish government’s handling of the original two complaints then followed, which called both Mr Salmond and Ms Sturgeon to give evidence.
During the inquiry, Mr Salmond attacked Scotland’s former top civil servant – then permanent secretary Ms Evans – accusing her of having a “bias” against him and calling for her resignation.
In March 2021 – just days before he announced he was the leader of the fledgling Alba Party – Mr Salmond confirmed his intention to take legal action against Ms Evans.
The inquiry, which worsened an already sour relationship between Mr Salmond and Ms Sturgeon – who had previously been close – found Ms Sturgeon misled MSPs in her evidence, but she was cleared of any breaches of the ministerial code.
Mr Salmond’s lawyer, Gordon Dangerfield, said: “This is an action of misfeasance in public office in which we aver that public officials of the Scottish government conducted themselves improperly, in bad faith and beyond their powers, with the intention of injuring Mr Salmond.
“We aver that public officials decided at an early stage that Mr Salmond was to be found guilty of allegations against him, regardless of the actual facts.
“As events snowballed, we aver that public officials then took part in the criminal leaking of confidential documents, the concealment of documents in defiance of court orders and a criminal warrant, the misleading of the court during judicial review proceedings, the soliciting of false criminal complaints, and ultimately the commission of perjury at a parliamentary inquiry.
“All of this, we aver, was done for political reasons, and specifically to injure Mr Salmond.”
Mr Dangerfield claimed many documents requested over the past year in regards to the averments “continue to be concealed by the Scottish government”.
He added: “A major aim of Mr Salmond in bringing this action is to obtain disclosure of this vital evidence and to blow apart the Scottish government cover-up which has gone on now for far too long.”
First Minister Humza Yousaf has said the Scottish government will “robustly” defend itself.
Speaking at a press conference at the British-Irish Council in Dublin on Friday, Mr Yousaf initially refused to be drawn on the case, but added: “Unsurprisingly to anyone listening or watching, the Scottish government will defend its position robustly, but I’ll say no more because that’s a live case.”
The acting chair of the Federal Deposit Insurance Corporation (FDIC), the regulatory body overseeing banks in the US, is reportedly considering guidance for tokenized deposit insurance and plans to launch an application process for stablecoins by year’s end.
Acting FDIC Chair Travis Hill, who has made bullish statements about tokenization in the past, told the Federal Reserve Bank of Philadelphia’s Fintech Conference on Thursday that the regulator will eventually release guidance around tokenized deposit insurance, according to reports.
The FDIC protects depositors in the event of a bank failure and insures money in accounts at banks that are insured by the regulator.
“My view for a long time has been that a deposit is a deposit. Moving a deposit from a traditional-finance world to a blockchain or distributed-ledger world shouldn’t change the legal nature of it,” Hill said, as reported by Bloomberg.
Excluding stablecoins, the total value of tokenized real-world assets surpassed $24 billion in the first half of the year, with private credit and US Treasurys making up the bulk of the market, according to a report by RedStone.
BlackRock, the world’s largest asset manager, is one of the most prominent players in the space and launched a tokenized money market fund called BUIDL in 2024.
Stablecoin application regime by the end of the year
At the same time, Hill reportedly announced the agency is also working on a regime for stablecoin issuance and expects to issue a proposal for an application process by the end of 2025 as part of its duties in crafting rules under the GENIUS Act, according to Law360.
He said it’s still too early to know how many institutions will be interested, but the FDIC staff is working on the standards around capital requirements, reserve requirements and risk management for FDIC-regulated stablecoin issuers.
Stablecoins have also been a high-growth area, with banks worldwide exploring this technology. The market capitalization of stablecoins is approximately $305 billion as of Friday, according to blockchain analytics platform DefiLlama.
Stablecoins have been a high-growth area this year, with a market capitalization of around $305 billion. Source: DefiLlama
Sir Keir Starmer and Rachel Reeves have scrapped plans to break their manifesto pledge and raise income tax rates in a massive U-turn less than two weeks from the budget.
I understand Downing Street has backed down amid fears about the backlash from disgruntled MPs and voters.
The Treasury and Number 10 declined to comment.
The decision is a massive about-turn. In a news conference last week, the chancellor appeared to pave the way for manifesto-breaking tax rises in the budget on 26 November.
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‘Aren’t you making a mockery of voters?’
The decision to backtrack was communicated to the Office for Budget Responsibility on Wednesday in a submission of “major measures”, according to the Financial Times.
The chancellor will now have to fill an estimated £30bn black hole with a series of narrower tax-raising measures and is also expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.
Tory shadow business secretary Andrew Griffith said: “We’ve had the longest ever run-up to a budget, damaging the economy with uncertainty, and yet – with just days to go – it is clear there is chaos in No 10 and No 11.”
How did we get here?
For weeks, the government has been working up options to break the manifesto pledge not to raise income tax, national insurance or VAT on working people.
I was told only this week the option being worked up was to do a combination of tax rises and action on the two-child benefit cap in order for the prime minister to be able to argue that in breaking his manifesto pledges, he is trying his hardest to protect the poorest in society and those “working people” he has spoken of so endlessly.
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Ed Conway on the chancellor’s options
But days ago, officials and ministers were working on a proposal to lift the basic rate of income tax – perhaps by 2p – and then simultaneously cut national insurance contributions for those on the basic rate of income tax (those who earn up to £50,000 a year).
That way the chancellor can raise several billion in tax from those with the “broadest shoulders” – higher-rate taxpayers and pensioners or landlords, while also trying to protect “working people” earning salaries under £50,000 a year.
The chancellor was also going to take action on the two-child benefit cap in response to growing demand from the party to take action on child poverty. It is unclear whether those plans will now be shelved given the U-turn on income tax.
A rough week for the PM
The change of plan comes after the prime minister found himself engulfed in a leadership crisis after his allies warned rivals that he would fight any attempted post-budget coup.
It triggered a briefing war between Wes Streeting and anonymous Starmer allies attacking the health secretary as the chief traitor.
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Wes Streeting: Faithful or traitor? Beth Rigby’s take
But the saga has further damaged Sir Keir and increased concerns among MPs about his suitability to lead Labour into the next general election.
Insiders clearly concluded that the ill mood in the party, coupled with the recent hits to the PM’s political capital, makes manifesto-breaking tax rises simply too risky right now.
But it also adds to a sense of chaos, given the chancellor publicly pitch-rolled tax rises in last week’s news conference.
The home secretary is set to unveil sweeping reforms to tackle illegal immigration, as she considers potential changes to human rights law.
Shabana Mahmood will announce on Monday a series of measures to make it easier to remove and deport illegal migrants, and reduce the “pull factors” that make the UK attractive to asylum seekers.
The Home Office said they would be the “most sweeping reforms to tackle illegal migration in modern times”.
She is said to believe that “excessive generosity and ease of remaining” in the UK, along with systemic barriers, has made deportations extremely difficult, The Times reported.
It is understood that many of the changes set to be proposed by the home secretary will be modelled on the Danish system, under which 95% of failed asylum seekers are deported.
Denmark has tighter rules on family reunions, and restricts some refugees to a temporary stay.
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UK considers copying Denmark’s immigration system
Ms Mahmood is also mulling reforms to the European Convention on Human Rights and human rights law to “end the abuse of the system that leads to unjustified claims to delay or stop deportations”, a Home Office source said.
The overhaul of modern slavery laws will require migrants to make a claim that they have been a victim as soon as they arrive in the UK, rather than allowing them to raise it unexpectedly later on, which has resulted in delayed deportations, The Telegraph reported.
The number of offences qualifying foreign criminals for automatic removal is also set to be increased, the paper said.
And judges are expected to be required to prioritise public safety over claims from migrants that deporting them would breach their family rights or put them at risk of “inhuman” treatment if they were returned to their home country.
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Sky News witnesses people smuggling operation in Dunkirk
Deportations are up – but so are boat crossings
Ahead of next week’s announcements, the Home Office released new figures showing 48,560 people have been removed from the UK since Labour came to power.
The figure, which includes failed asylum seekers, foreign criminals and others with no right to be in the UK, is a 23% increase compared to the 16 months before last year’s election.
Ms Mahmood said: “We’ve ramped up enforcement, deported foreign criminals from our streets, and saved taxpayers millions.
However, small boat crossings continue to rise – 39,075 people have made the journey so far this year, according to Home Office figures.
That is an increase of 19% on the same point in 2024 and up 43% on 2023, but remains 5% lower than the equivalent point in 2022, which remains the peak year for crossings.