Scottish MPs and farmers are expected to meet Hilary Benn, the Environment Secretary, tomorrow to discuss concerns in light of the farming subsidy row that has created severe tensions between Holyrood and Westminster.

Alistair Carmichael, the Liberal Democrats' Scottish spokesman, said he had a "helpful and constructive" telephone conversation with Mr Benn, who had agreed to meet him, other Scottish MPs and representatives of the livestock industry in London this week.

The MP for Orkney and Shetland said he was delighted to have secured the meeting, which would be "probably on Tuesday".

He told The Herald: "I hope we will get proper communication between the Westminster government and the Scottish livestock industry, which has not been happening up until now.

"I hope it will demonstrate that constructive engagement is the best way to promote Scotland's farming interests rather than the political point-scoring that has characterised the approach of the SNP administration."

The issue of Treasury aid to help Scottish farmers cope with the aftermath of the foot-and-mouth outbreak in England hit the headlines last week after Alex Salmond issued reporters with a copy of Mr Benn's draft statement to the House of Commons, in which he outlined an £8.1m subsidy to the livestock trade north of the border.

However, the commitment did not appear in the final version of the Secretary of State's statement given to MPs last Monday.

The First Minister branded the change "disgraceful", suggesting the reason why the package had been dropped was because the draft had been drawn up while a snap poll was being considered and had been abandoned once Gordon Brown had ruled out an autumn General Election.

This assertion, however, was strongly denied by Mr Benn, who said until the final bill for the outbreak had been calculated, it was thought best for all the devolved administrations to take on board the cost. He pointed out once the final figures were known, Holyrood could approach the Treasury.

However, the farming subsidy row has created fresh tensions between Holyrood and Westminster.

Sources at the Scotland Office claimed it was outrageous that Mr Salmond used normally confidential inter-governmental correspondence for "party political advantage".

The Herald has been told a red alert has been issued to ministers, officials and special advisers across Whitehall to "tread carefully" when sharing information with counterparts in the Scottish Government.

The issue is likely to be one of the items at the top of the agenda when Mr Salmond and his Cabinet meet tomorrow. A Scottish Government source said last night: "Everyone with Scotland's interests at heart should be pressing Defra to live up to its responsibilities."

Also a key priority for Mr Salmond and his Cabinet will be the Scottish settlement announced by Alistair Darling last week. The Chancellor insists the package amounts to an increase of £7.2bn over the three-year period, reaching a total of £30bn.

But the First Minister argues that because of changes to the financial baseline of the settlement the 2008-11 budget produces only a £1.1bn total rise with an increase next year of just 0.5%.