Senior Labour figures rounded yesterday on Alex Salmond, the First Minister, after he demanded more than £800 million from the Treasury to help Scotland through the global financial crisis.

Mr Salmond has called for money held by the Treasury to be handed to Scotland to help to protect the Scottish economy from recession.

In a stern rebuke to Mr Salmond, Angela Eagle, the Westminster Treasury Minister, told him: “We face the most serious challenge to the global financial system and the world economy for many decades and now is the time to pull together to get Britain through. The public deserves better than Mr Salmond’s rehashed fantasy wish list.”

Ms Eagle also claimed that Westminster was already increasing spending in Scotland this year through higher tax allowances and the winter fuel allowance.

Mr Salmond admitted yesterday that the financial crisis was best tackled on a “coordinated” basis but maintained that he was focused on the impact on the real economy.

Mr Salmond will convene a special economic Cabinet meeting on Tuesday at which he will make the case for extra funding to come to Scotland.

He is urging Westminster to release £120 million from the fossil fuel levy surplus; the Scottish Government’s £42 million underspend; council tax benefit payments worth £476 million; the Barnett formula impact of London Olympics regeneration spending estimated at £33 million; £120 million of prisons spending from the Carter review; and £40 million in police and firefighter pension costs.

The SNP estimates that the package would provide a £1 billion boost for the Scottish economy.

However, Mr Salmond’s demand angered his Labour opponents in the Scottish Parliament who believe that it is a fresh attempt to drive a wedge between Scotland and London.

John Park, Scottish Labour’s economy and skills spokesman, accused Mr Salmond of playing party politics. He said: “As the UK Government is in the process of supporting the UK’s financial industry, protecting jobs, savers and businesses, the SNP instead make ridiculous demands trying to muddy the water as their independence agenda continues to disintegrate.”

The Mid-Scotland and Fife MSP added: “This is a typical tactic by the SNP. Far from standing up for Scotland they are creating confusion by picking a fight with Westminster. Alex Salmond said he wanted to work with the UK Government in protecting Scotland’s interests; instead he makes ill-thought out demands to hog the limelight.”

Labour claim that the First Minister could help the Scottish economy by scrapping the Scottish Futures Trust and investing in building new schools and hospitals.

Meanwhile, Jim Murphy, the Scottish Secretary, has attacked the SNP over the economic problems facing the smaller independent states previously hailed as the “arc of prosperity” by Mr Salmond.

Mr Murphy pointed out that Iceland, Ireland and Norway have now been branded the “arc of insolvency” after recent problems. They had been used by the Nationalists in opposition as an example of small countries that had flourished and as examples which Scotland could follow.

In an interview in The Sunday Times Mr Murphy said: “Iceland as a country is on the verge of bankruptcy. Ireland is officially in recession. Ireland and Norway are trying to borrow from the US and Russia. That’s not Scotland’s destiny.”

Mr Salmond told the BBC’s Politics Show: “Norway’s latest forecast in the last few days for growth next year is just under 2 per cent . . . Would that we were in the Norwegian position, not two years ago, but right now.”

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