ALEX Salmond's £400,000 plan to set up a base in a plush London club to promote Scotland during the Olympics was yesterday branded a "colossal waste of money", after it emerged that the First Minister could have used the Scotland Office situated in Whitehall for free.

Willie Rennie, the Scottish Liberal Democrat leader, suggested Mr Salmond had erected a vanity project in central London.

He said: "It's a bit rich for Mr Salmond to complain about a lack of funds for schools and hospitals while spending almost half a million pounds on a plush London address during the Olympics.

"Spending the equivalent of a nurse's annual salary every day on the exclusive Pall Mall address, when Dover House was available free of charge, is a colossal waste of money."

Scotland House has been established at the exclusive Army and Navy Club near Buckingham Palace to showcase the country.

Opening it last week, Mr Salmond quipped how for the 17 days of the 2012 Games the club would become a "little bit of England that is forever Scotland", with receptions promoting Scottish business, sport and culture.

However, there have been suggestions that Scotland House has been largely deserted, with most visitors being officials transported down from Scotland.

VisitScotland and Creative Scotland are among organisations helping to fund the venture.

Last night a Scottish Government spokesman told The Herald: "Dover House did not meet our accommodation requirements for a range of reasons, including access.

"Partners considered a range of options and the venue selected for Scotland House was seen as the best base from which to promote over 50 events designed to showcase Scotland's interests to a worldwide audience."