First minister Jack McConnell

Budgets for the Scottish executive will continue to rise, the chancellor has pledged.

Gordon Brown told MPs that spending north of the border would grow by an average annual rate of 3.5 per cent in real terms over the next three years.

This will see total spending for Scotland rise from £21 billion to £25 billion.

Scotland secretary Alistair Darling said the announcement was "an excellent spending settlement for Scotland".

"Devolution continues to work well for the benefit of all the Scottish people," he said.

"It is now for the Scottish Executive to publish its plans for delivering the best possible public services and investment, and deliver prosperity for all the people of Scotland, in partnership with the government."

The extra funding will go to the devolved executive, led by first minister Jack McConnell.

There will be no increase in the costs of the Scotland Office over the coming years.