The funding issue is controversial

The group in charge of care homes for the elderly has warned a row over funding may see it refuse admission to new residents.

It follows an announcement by the Scottish Executive and the Convention of Scottish Local Authorities (Cosla) that �80m was available to help pay for home fees.

The offer means paying �406 a week for each resident receiving nursing care, an increase of 21% in the past two years, councils say.

Scottish Care, which speaks for hundreds of private care home owners, described the funding offer as "outrageous" and accused ministers and local authorities of "intransigence".

A spokesman said those attending a meeting on 12 March to discuss the offer to resolve the ongoing funding dispute would most likely reject it.

'Take it or leave it'

According to the executive and Cosla, since July 2001 more than �130m of additional public funding has been offered to the care home sector.

But Joe Campbell, Scottish Care chief executive, accused the executive of reneging on promises to have "regular and meaningful" discussions over funding.

He also accused councils of trying to mislead the public by threatening Scottish Care's 800 members with a "take it or leave it" offer.

"My view is one of disbelief that the executive and Cosla have talked incessantly about the need for discussion, yet refuse to talk about the real costs involved in caring for the elderly and vulnerable members of our society," he said.

Care homes may be closed to new residents

The Church of Scotland, which provides 30 residential homes for older people, accepted the offer.

Director of Social Work Ian Manson said: "While we believe that the cost of residential care is significantly greater than �346 per week, we have reluctantly agreed to accept this baseline figure from the executive and Cosla."

The Salvation Army, another principal voluntary sector provider, also accepted the offer.

In a joint statement, Deputy Health Minister Frank McAveety and Cosla president Pat Watters said they were disappointed not everyone was happy with the funding package.

'A good deal'

The statement said it was "a good deal" for care homes and represented an offer above the rate of inflation.

"We hope that the private sector care home providers recognise the substantial level of funding provided by the executive and local government," it added.

It said the offer showed a willingness to offer "unprecedented resources aimed at ensuring our older people receive appropriate care, dignity and security in old age".