POLICE Scotland faces a budget overspend of £17.5 million this year, according to the body which oversees the force.

Despite falling crime, the national force is facing soaring demand as the service of last resort from everyone from Alzheimer’s patients to those with mental health issues.

It has failed to meet savings targets and found no quick fix to its biggest single outlay, the payroll.

Read more: Royal Bank of Scotland reports £469m loss in third quarter

The force’s predicted 2016-17 overspend is even bigger on its revenue budget – a total of £27.1m – but this is offset by an underspend on capital budget of £9.6m.

Yet Police Scotland has inherited buildings and IT equipment that many officers believe are not fit for purpose, with insiders warning that scaling back capital spending could actually make it harder to make future savings.

At the SNP conference last month, Scottish Police Federation (SPF) general secretary Calum Steele said the scale of the financial challenge facing the police service is “enormous”.

Mr Steele added that Police Scotland has been using cars held together with duct tape and cable ties, while interview suites for sex assault victims have water coming in and mouldy carpets.

He blamed decades of under-investment in infrastructure.

An Audit Scotland report published last year warned policing in Scotland could face a funding gap of almost £85m by 2018/19.

Read more: Royal Bank of Scotland reports £469m loss in third quarter

Scottish Labour justice spokeswoman Claire Baker MSP said: “Officers and staff should be getting the support and resources that they need to keep our communities safe, but instead they are facing huge cuts and uncertainty.”

Scottish Liberal Democrat MSP Liam McArthur added: “Last year the national force overspent its day-to-day budget by £18m. In August we were told it would be £21m this year. Now they admit it’s risen to £27m. Police Scotland’s budget crisis is going from bad to worse. It’s time that ministers plug the black hole in the police’s budget before hard-working officers and staff pay an even higher price for the SNP’s disastrous reforms.”

Yesterday, the SPA heard that Police Scotland would rebrand its specialist division which investigates allegations of corruption against its own officers.

The Counter-Corruption Unit, which was at the heart of a controversy when it breached guidelines to look for the source of a newspaper story about a murder inquiry without judicial approval, will now be called the Anti-Corruption Unit.

The new-look unit will follow a series of recommendations by watchdogs to ensure it remains focused on the threat posed by organised criminals who want access to force secrets.

Deputy Chief Constable Johnny Gwynne said: “Following the review of our approach to counter corruption and acting on the recommendations ... Police Scotland will restructure and re-focus its activity in this area.

Read more: Royal Bank of Scotland reports £469m loss in third quarter

“The unit will be known as the Anti-Corruption Unit and will report directly to myself. The firm focus of the unit will be on investigating and preventing serious corruption, particularly targeting those individuals or groups who seek to corrupt officers and staff.”