THE arts in Scotland, along with historic buildings, are to benefit

under the public expenditure settlement -- a move welcomed by the

Scottish Arts Council chairman, Dr William Brown.

The Arts Council will receive a grant of #24.477m, which represents an

increase of #700,000 on the current award. Historic Scotland building

repair grants have been set for the year at #300,000, which is an

increase to #12m.

This will allow the main construction phase of the new Museum of

Scotland to begin next year.

Dr Brown said: ''Over the past few years, the arts in Scotland have

developed a momentum of excellence, with many individuals and

organisations distinguishing themselves in national and international

arenas.

''Such levels of artistic quality are a valuable asset to the nation,

through securing jobs in the home economy, and enhancing our reputation

abroad.''

The council now intends to draw up a detailed budget plan for

allocation of its 1995/96 grants, with individual grants to SAC funded

organisations announced in early February.

Following the announcement, Sir Hector Monro, Arts and Heritage

Minister at the Scottish Office, said he felt the grants to the arts and

historic buildings had fared well, with good financial settlements.

It was, he said, a commitment by the Government to ensure the arts and

heritage continued to flourish.

Mr Eric Robinson, director of the Scottish Arts Lobby (SALVO), offered

a guarded welcome to the 3% increase, which he said was a form of

''inflation-proofing''.

He said: ''We are extremely relieved, given the freeze imposed on arts

funding last year. The extra #700,000 will basically cover inflation

from last year and for 1995 as well.''

Mr Robinson added that he felt Sir Hector should be congratulated for

wringing the increase out of a Scottish Office hit by overall funding

cuts.

However, SALVO were concerned by reports of a cut in the settlement

for local authority provision of library and museum services.

Mr Robinson said: ''These vital services already face a future of

considerable uncertainty with the reform of local government currently

underway. This is extremely worrying.''