One of Scotland's biggest book companies has split from the nation's main publishing body, questioning its existence and describing its funding by the arts council as a "disgrace".

One of Scotland's biggest book companies has split from the nation's main publishing body, questioning its existence and describing its funding by the arts council as a "disgrace".

Birlinn, which publishes 150 new books a year - including works by great Scottish writers past and present such as James Kelman, Alexander McCall Smith, Lewis Grassic Gibbon, Sorley MacLean and Hamish Henderson - has withdrawn from its membership of Publishing Scotland in protest at the £260,000 grant the body has received from the Scottish Arts Council (SAC).

Hugh Andrew, chief executive of the Birlinn/Polygon group, said he is dismayed not only with the grant given to Publishing Scotland but the SAC's suspension of funds to Scottish publishers.

The SAC last week gave Publishing Scotland £260,000 for 2009-10 and 2010-11 to "support a programme that develops Scottish publishing nationally and internationally".

Mr Andrew also questioned the worth of its booksfromscotland.com website, which sells books online, and asked why a trade association should receive public funds.

Last night he said: "The whole situation is a disgrace. I've decided enough is enough - and I know privately that others in the publishing world in Scotland are entirely sympathetic to our stance."

Last night Gavin Wallace, head of literature for the SAC, defended the funds for Publishing Scotland, saying its application "included proposals for the improvement of existing services and a number of new developments including a dynamic international rights database to sit within Booksfromscotland.com, major research into future publishing trends and an e-publishing and digital development fund".

Lorraine Fannin, chief executive of Publishing Scotland, said the suspension of the SAC's grants to publishers had nothing to do with the money given to her body.