Commerce chief calls for pay reforms
Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said that "dithering" over such reform will only make the extent of cuts even more severe.
His comments came ahead of the UK government's comprehensive spending review.
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Hide AdMr Hewitt said: "We cannot afford to delay any longer reform of public sector pay and pensions.
"Postponing decisions over cuts and dithering over pensions reform simply delays the inevitable and provides very little evidence that we are actually tackling the problem."
The comments come amid increasing concerns about a "double dip" recession, with recovery in the earlier part of this year slowing and expected to return again next year.