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THE Con Dem Government has handed a £30,000 taxpayer-funded PR contract to the company of a Better Together boss.

Questions have been raised after it emerged the UK cabinet office’s devolution team paid the sum to Engine Partners for "communication support" in January.

The work is understood to be related to the UK Government’s campaign against Scottish independence.

Craig Harrow, convener of the Scottish Lib Dems and director of the pro-UK Better Together campaign, is in charge of the firm’s Edinburgh operations.

The SNP last night said the revelations suggest the UK Government is handing out "public money round their friends as if it were their own".

Harrow, 45, has been masterminding the Lib Dem’s drive for a No vote and was a founding member of the Better Together campaign headed by former Labour chancellor Alistair Darling.

In addition to his role as party convener he has also acted as Chief Secretary to the Treasury Danny Alexander’s election agent.

Records from Companies House show Harrow is a member of the limited liability partnership Engine Partners UK. The company’s website lists Harrow as the Edinburgh contact for business inquiries.

Engine’s Edinburgh office is at 3 Melville Crescent - right beside the Lib Dem-run Scotland Office's HQ in the Scottish capital.

Harrow is also managing director of PR firm MHP Communications, which also operates from 3 Melville Crescent.

Harrow insisted the contract was with another part of Engine Partners that he does not have responsibility for.

A spokeswoman said: "Craig Harrow had no personal involvement in this contract."

But a SNP spokeswoman demanded answers, saying: "As well as £46,500 on secret polling, it now emerges that the Tory/Lib Dem UK Government has given £30,000 of public money to a company run by the Convener of the Lib Dems in Scotland.

"Mr Harrow is also a Director of the No campaign and Danny Alexander’s election agent - and his office just happens to be next door to the Scotland Office.

"The Westminster Establishment are entitled to campaign for a No vote, but they are not entitled to parcel public money round their friends as if it were their own. "These needs to be full disclosure of this secret spending, publication of exactly what it bought, and both Danny Alexander and Willie Rennie need to tell us what they knew about it."

But a spokesman for the Treasury said the contract had been won fairly.

“The Chief Secretary was not involved in the appointment of Engine Partners to provide consultancy to the government," he said.

"[Harrow] has no role in running the account. All spending in relation to the government’s work on undertaking analysis, communications and research associated on the future of the United Kingdom has been made in full compliance with all relevant processes and procedures.

“The government remains committed to keeping the United Kingdom together and is focused on ensuring that the people of Scotland have access to the information and arguments that they need to make that crucial decision.”

And an aide to Danny Alexander attacked the SNP for their criticism.

He said: “The fact that the SNP is now resorting to innuendo and misrepresenting the facts illustrates the bankruptcy of their case for independence. They will do and say anything to avoid answering the questions about the gaping holes in their argument.”

The revelations came after it emerged the devolution team also paid £46,550 to pollsters Ipsos Mori for "market research on attitudes in Scotland towards Scottish independence".

First Minister Alex Salmond yesterday demanded the results of the survey were published. But the cabinet office devolution team spokesman said it was "not usual practice" to publish internal polling.