LABOUR faces being massively outspent by the SNP during next year's Scottish parliament election because of the party's cash crisis.
Scotland on Sunday can reveal that Scottish Labour's election spending has been cut back to barely £600,000, compared with £730,000 in 2003, and £1m in 1999.
The squeeze will see key staff not being replaced, less cash for mailshots in swing seat
s and the posting of cut-price election broadcasts on the internet.
And unless Labour north of the Border can attract a last-minute, major donor other cutbacks being considered are on billboard advertising and the "phone banks" used to target floating voters.
The situation is all the more grim for Labour because it faces a newly resurgent SNP which is ahead in the opinion polls and claims to have already raised £600,000 of its £1m target.
The Scottish Tories refused to say how much they had so far raised but claimed they were on target for a spend similar to 2003, about £720,000. The Lib-Dems said they were confident of raising £500,000. Even the Green Party believes it will double its spending, to £100,000, for the May campaign.
Labour last week admitted "acute cash flow problems" as Electoral Commission figures revealed it owes £23.4m, with the majority - £17m - to be paid back before the end of next year. The issue is particularly sensitive for Labour as the police investigation over "cash for honours" gets closer to Downing Street.
Scottish Labour campaign managers were warned of the grim financial situation at a closed session at last weekend's party conference in Oban. Chairwoman Hazel Blears warned of "challenges" in funding the Holyrood campaign using cash from the party's central coffers.
A Scottish Labour insider admitted: "There is going to be less cash this time around. There will be no last-minute helicopter tour for Jack, and we will be cutting back on the billboards and the telephone calling banks."
Another source said: "You are talking about a cut of about at least 20%, although we are still talking about estimates at this stage. Even with extra cash from the unions it won't be easy. The unions themselves don't have that much money right now."
It is understood the budget for election broadcasts is being examined. A Labour source said the possibility of putting cut-price election slots on the internet - including the web video site, Youtube - was being considered.
Although Labour has not used helicopters for Scottish elections, they were used by Labour during last year's general election and they have been used by all the other main parties north of the Border.
If a lack of money means a no-fly zone being imposed, politicians increasingly opt for people carriers to get themselves and their teams around the country.
The traditional "battlebus" is increasingly being shunned as anachronistic by the parties. Insiders say its main use in modern campaigning involves the most ineffectual or downright embarrassing politicians being consigned to battlebuses so that they can do the "minimum damage" while still being under the illusion that they are involved in the campaign. Labour strategists make a point of insisting that their deputy leader, John Prescott, should be in the battlebus.
An SNP spokesman said: "We have been careful with the money and we now expect to be in a good position to make our case known to the people of Scotland."
A Liberal Democrat spokesman said his party was "well on course" to raise its target £500,000, and the money would be used to win votes in seats which were not traditionally seen as Lib-Dem.
A Scottish Tory spokesman said party managers did not anticipate any funding problems.
Both the Nationalists and Lib Dems' spokesmen said it was too early to say whether they would be using helicopters during the campaign, although both parties have used them in the past.
While eschewing aircraft in favour of bicycles and walking is more the Greens' style, even they believe they are on course to increase their spending in this election and have set a target of £100,000.
A spokesman said: "We're careful with our resources, just as we believe in being careful with the Earth's resources. We aim to double our campaign budget this time. We don't have the backing of big business, just the goodwill of ordinary donors."
A Labour spokesman said: "We are confident we can raise the necessary funds . . . and fight a campaign which will put the people of Scotland first. "
