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A long-running dispute between private care homes and local authorities has finally been settled, writes Nicola Barry.

Following over a year of negotiations, the Scottish executive has stepped in with an offer of £61 million to increase the fees care home operators receive from local authorities.

A spokesperson for the Convention of Scottish Local Authroties said: "We welcome the £61 million put on the table by the executive. It is the second part of a deal we have agreed with Scottish Care."

Scottish Care, the umbrella organisation, which represents care home owners north of the border previously issued an ultimatum advising members to refuse to take local authority-funded residents unless the council came up with an average of £50 extra per resident a week.

Relations between care providers and councils have deteriorated in many parts of the country as a result of rows over funding.

Earlier this year the executive announced plans to phase in the funding for care home fees over two years. In March, £27 million was offered as the first part of the package, with £24 million from the executive and £3 million from COSLA.