Concern raised over widening of pensions deficits

SCOtland's biggest employers might face a fresh surge in pension deficits as a result of the government spending review this week.

The warning was issued by Buck Consultants as it revealed the deficit of the final-salary schemes of the country's largest private-sector employers rose by 300 million in September, taking the shortfall to 9.2 billion.

And final salary scheme costs could rise further if investors react bearishly to the spending review, claimed Fraser Smart, northern region director at Buck Consultants.

"Our largest firms may well take a blow if investors …move their cash to safer investments."