The change, aimed at providing nutritional lunches and beating Scottish's bad eating habits, is to be introduced nationally in August 2010 to all primary one to three pupils.

It was announced by Fiona Hyslop, the SNP's secretary for education and lifelong learning, but criticised by Highland Council's administration which last month voiced concerns about a shortfall of nearly £20 million for next year's budget.

It followed revelations, earlier this summer, that the authority faced its toughest financial challenge for 15 years, leading to speculation of job losses and cuts to services.

Councillor David Alston, who oversees the council's budgets, expressed concern at the further pressure being put on the authority, which currently provides free meals to 20 per cent of P1 to P3 pupils. The cost to the council of producing a school meal is £2.44 but the price of a school meal is £1.65.

"We all share the aspiration to provide nutritious free school meals to pupils in P1 to P3," said Councillor Alston, the deputy Liberal Democrat group leader. "Aspirations must be backed by funding to make them a reality."

Administration leader, Councillor Michael Foxley, said it was a surprise because no additional funding had been discussed. "At a time of very real pressure on our budgets, we need to clarify the situation," he added Half of the country's local authorities say they will not be able to implement the policy without further funding.

Councillor Bill Fernie, chairman of the council's education, culture and sport committee, said the change would mean a loss of income from the sales of school meals, additional costs of extra staff and additional kitchen and dining space in dozens of schools.

* Pay offer — There will be more pressure on the council's budget with an increased pay offer of 5.5 per cent over two years to Highland Council workers.

This caused the third planned strike in three months to be called off.

Members of Unison, Unite and GMB are to consider the offer from the Convention of Scottish Local Authorities, which would be backdated to April. They had been offered 2.5 per cent from April 2009.

Selective strike action, involving specific local authority departments, had been scheduled to start yesterday and run for two weeks.

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