ALEX Salmond has blamed the UK Government's spending cuts for pressures on the NHS after watchdogs warned the health service in Scotland was struggling to cope with demand.

The First Minister yesterday faced claims he was "in denial" about the state of NHS Scotland.

He rejected the charge during clashes at First Minister's Questions but insisted problems were caused by the Coalition Government's austerity programme.

Mr Salmond was challenged by Labour's Jackie Baillie, standing in for former Scottish Labour leader Johann Lamont, a day after Audit Scotland highlighted a list of problems facing the NHS.

In a hard-hitting report, the public spending watchdog said health boards were struggling to stay in the black, were failing to meet waiting times goals and losing millions of pounds as a result of so-called bed-blocking.

Ms Baillie said the report made "grim reading."

She added: "The First Minister is in absolute denial. In his world everything is wonderful and rosy, but whilst we wait on answers there are people in Scotland's hospitals waiting on trollies, there are people waiting for an ambulance turning up, there are people waiting for an NHS that Scotland needs and the people deserve."

Mr Salmond said the report recognised that cuts to spending across the UK meant Scotland's overall budget was being reduced.

He told MSPs: "Yes, of course there are pressures on our NHS.

"How could it be otherwise, imprisoned within the austerity of the UK Government?"