OSCR may be forced to delay its planned IT upgrade and online services due to lack of funds.

The Scottish regulator had planned to introduce new technology allowing for online filing next summer.

However, the cost of the new service, estimated at £200,000-£240,000, takes the public body over the threshold for EU procurement.

Jane Ryder, chief executive of OSCR, said at the regulator's annual meeting: “Having considered the position with government procurement experts and our own legal advisers, the times lines are so extended that we cannot complete the cycle of advertisement, contract award and delivery within this financial year ie by April 2011.

“At this point, it is likely that we cannot make a substantial capital commitment until the outcome of the CSR is known and our budget confirmed. We are likely to have to delay formal commissioning the IT upgrade until the next financial year 2011/12.”

However, Ryder added that an IT upgrade remained one of OSRC’s absolute priorites: “It is more than reasonable expectation that a public body such as OSCR should have an infrastructure which allows our users easy electronic access, as well as introducing efficiencies for OSCR.

"In the scheme of things it is a very modest amount and I will argue that it is eminently affordable for the public purse whatever the economic and political difficulties and changes ahead.

“So I remain very optimistic that we can commission the IT upgrade and introduce online services in the course of 2011/12, even if it is not as early as April as we had originally planned.”