As Tony Blair campaigns in Scotland, the SNP has challenged him to increase Scotland's share of health spending.

The prime minister said that Labour would retain the position of Scottish Secretary and would not scrap the Barnett formula which governs the distribution of funds across the UK. He also hit at his opponents over Europe.

"If we isolate ourselves from Europe or even, as some of the Conservative proposals would imply, go out of Europe, it would be devastating for the millions of British jobs and 60 per cent of British trade that depends on Europe," he told BBC Radio.

The Scottish National Party concentrated on public spending and challenged Blair to increase health spending north of the border.

"Scotland has one of the worst health records in Europe. We have the highest rates in the UK for deaths caused by cancer, and our cancer death rates are higher than in any other EU country," said party leader John Swinney.

"It is totally unacceptable that when our cancer rates are the worst in the UK, Scotland's share of UK health spending is falling. Over the next three years, the Scottish budget will be robbed of £2 billion overall - and £386 million from the health budget," he added.

The challenge came as the SNP launched a new poster campaign focussing on health. "Cut our cancer deaths, not our budget" the poster urges.