By Steve Bargeton, political editor

THE SCOTTISH Tories yesterday challenged councillors who are getting huge pay-offs but are standing as candidates for Holyrood to give the cash back.

A total of 434 councillors are to share a payout of £7.1 million under an Executive-funded severance scheme.

Under the deal councillors can receive up to £20,000 if they stand down at the elections in May and do not stand again for local government.

But there is nothing to stop the politicians keeping the cash and going on to seek election to the Scottish Parliament where, if they are successful, they will pick up a £50,000 salary and huge expenses.

Yesterday Scottish Tory deputy leader Murdo Fraser blasted those councillors trying to stuff taxpayers’ cash into their “grubby little hands” and said the public would be dismayed.

“Politics should be about public service, Mr Fraser said.

“It’s an absolute disgrace that we have people who are on the one hand taking these redundancy payments but at the same time seeking election to the Scottish Parliament—where they will receive a salary well in excess of what they could have been receiving as a councillor.

“People can’t have their cake and eat it.

“And people standing for election to the Scottish Parliament have to make a decision—either they are going to do that, or that they are going to step down and take the money.

“They can’t have it both ways,” he insisted

Earlier this week Finance Minister Tom McCabe faced accusations of a cover-up when he refused to allow the amounts being paid to retiring councillors to be released by the Executive.

The Executive issued a list of the 434 councillors seeking the payoff but gave no details of their parties, length of service, or how much each would get.

An Executive spokesman said councillors taking the severance payment could not stand again as councillors in Scotland.

But they can seek election as MSPs, MPs, Euro MPs, or as councillors in England.

“The severance package forms part of our ongoing commitment to the renewal of local democracy,” said the spokesman.

“It’s a positive way of recognising the valuable service provided to local people over the years by councillors.”