Spending in Scotland to fall, warns MSPs

09/06/2009

Holyrood committee says budgets will be squeezed over next few years

This year is likely to be the peak year for public spending in Scotland "for some years to come", a commitee of MSPs has warned.

The Scottish Government faces a tough financial settlement over the next few years, and should prepare for less public spending, acoording to a Holyrood watchdog report.

The Finance Committee believes it will be increasingly difficult for public bodies to absorb savings through efficiency measures.

Its report warned: "While it is not possible to make predictions with any certainty, the central point in the context of the Scottish Government's budget is that it is clear that a challenging budget process is not going to be a one-off for 2010-11."