Theft and fraud are set to rise in Scotland's public sector as spending cuts start to bite, experts have warned.

With job losses and the fear of redundancy looming, a PricewaterhouseCoopers survey has found a sharp rise in cash and equipment being stolen.

And its Scottish forensics director Richard Neave warned the problem was likely to get worse as tough cuts begin to bite.

"Over the last few years, we have clearly seen the direct effect of economic pressures on people's ability to rationalise fraudulent actions - neither the private nor the public sector is immune," he said.

"With cuts threatening the pace of recovery in Scotland and a looming public-sector recession we cannot ignore the fact that these pressures are going to be felt sharply in the coming years."

The UK Government announced a range of cuts in the recent emergency Budget aimed at tackling the UK's £155 billion annual deficit.

More than 170 senior representatives in 35 countries around the world took part in the company's survey, including 44 in the UK. A majority of UK respondents reported increases in levels of economic crime over the last 12 months, and most believe their organisations are at greater risk.

Fraud is mainly perpetrated by more junior members of staff in the public sector, the report finds, although this may change as cuts begin to bite.