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Up to 60,000 public sector workers in Scotland could lose their jobs in the next few years, an independent review commissioned by ministers has said.
The panel, which considered options for future expenditure, recommended a fall in public sector employment of between 5.7% and 10% by 2014-15.
It called for reductions to be made as far as possible by natural wastage.
The panel was created in February to detail which cuts could be made in the face of a £42bn squeeze over 16 years.
The Independent Budget Review report set out options that Holyrood may want to consider "in the face of the most challenging public spending environment since the Second World War".
It said one in 10 public sector jobs would have to go if pay grew in line with UK plans, although this could drop to 35,000 (5.7%) if a tougher approach to pay restraint was adopted.
The report called for a two-year pay freeze from 2011-12 "as the first essential step to constrain growth in the public sector pay bill" - which accounts for 60% of spending in Scotland.
It also called for a review of public sector pensions and a reduction in the number of public bodies.
The three-man panel recommended subjecting all services - including the NHS - to scrutiny. It said there should be "no overriding presumption of protection for any of the major services".
The panel, which considered options for future expenditure, recommended a fall in public sector employment of between 5.7% and 10% by 2014-15.
It called for reductions to be made as far as possible by natural wastage.
The panel was created in February to detail which cuts could be made in the face of a £42bn squeeze over 16 years.
The Independent Budget Review report set out options that Holyrood may want to consider "in the face of the most challenging public spending environment since the Second World War".
It said one in 10 public sector jobs would have to go if pay grew in line with UK plans, although this could drop to 35,000 (5.7%) if a tougher approach to pay restraint was adopted.
The report called for a two-year pay freeze from 2011-12 "as the first essential step to constrain growth in the public sector pay bill" - which accounts for 60% of spending in Scotland.
It also called for a review of public sector pensions and a reduction in the number of public bodies.
The three-man panel recommended subjecting all services - including the NHS - to scrutiny. It said there should be "no overriding presumption of protection for any of the major services".
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