Business leaders have called for private firms to be given the chance to provide public services.

The CBI in Scotland has urged ministers to consider the move in a bid to cut costs for "leaner times ahead".

The organisation said private-sector firms should be able to compete on a fair basis, with no "institutional bias" against them. It has also argued that the government's decision not to outsource health service and other work to private firms is "misguided".

CBI Scotland assistant director David Lonsdale said: "Greater competition in the delivery of public services has the potential to drive up performance and ensure better value for money, which will be critical as the public finances enter a far leaner period over the next decade.

"However, a firm commitment is needed from government to a fair and consistent approach to competition in which the private sector is given the opportunity to prove its worth on a level playing field."

The CBI has submitted its comments to the Scottish Parliament's finance committee, which is currently examining plans to reform public services. It is calling on the government to ensure best value for money through competition, with the best provider selected to deliver the service.

The CBI suggests that the private sector "can be a part of the solution" and highlights the example of oil and gas firms who contract out back-office work to a specialist firm in Aberdeen.

A Scottish Government spokesman said: "We are doing extensive work to make sure that public-sector contracts in Scotland are available to the private sector, particularly small and medium-sized enterprises.

"We are also continuing dialogue with the business sector and actively looking at ways we can improve all private companies' opportunities."