Lochhead says critical funding remains, despite £55m cut

Even although some £55 million has been slashed from the Rural Affairs and Environment budget - with a 10 per cent drop from £594.4m this year to £539m from April 2011 - the Cabinet secretary was keen to emphasise that critical parts of the budget had been retained.

Richard Lochhead said his government had worked hard to deliver a budget which not only ensured that Scotland's rural areas were supported through tough economic times, but which also protected the environment.

He specifically pointed to the support in the country's less favoured land areas, which have been held at 2010-11 levels with some 65m going into these remote and hilly areas.

Some organisations largely funded by the government fared less well, with Scottish Natural Heritage's budget being drawn back from 67.9m to 60.7m.

The Scottish Environment Protection Agency's budget has also been trimmed, from 44.3m in the current year to 39.4m in the coming year.

Lochhead said there would also be reductions in the amount of cash in the Scottish Rural Development Programme, although he emphasised that those projects which had either been accepted or were under way would not be affected by the cut backs.

"Funds that are critical to economic recovery and sustainable growth have been prioritised, and we have made savings where possible through efficiency savings and reduced spending on administration," he said.