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Scottish government costs 'too high', says CBI boss

28 August 2012 Last updated at 10:40 BST

The director of CBI Scotland, Iain McMillan, believed the costs of government in Scotland were "too high" and they needed to come down.

He added that a new approach could mean job losses.

Mr McMillan told BBC Radio Scotland's Good Morning Scotland programme: "But I think that job losses would be far fewer if, for example, there were several years of quite low pay rises in the public sector.

"We are having to go through a very painful adjustment to get the UK economy back on track."