Justice Secretary Michael Matheson has rejected claims that a new strategy for policing in Scotland over the next decade will see bosses "hatchet" staffing levels in a bid to curb the force's overspend.

Mr Matheson made the comments as MSPs on a Holyrood committee questioned him about funding for Police Scotland, which is predicted to have a spending gap of up to £27.5 million.

The Justice Secretary said watchdogs at the Scottish Police Authority were forecasting an overspend of about £17.5 million for the current year as he accused the UK Treasury of discriminating against Police Scotland by preventing it from recovering VAT charges.

This has cost Police Scotland £76.5 million since the national force was set up, he said.

Mr Matheson added that a project for a new mobile communication system for the emergency services would cost the force almost £65 million over the lifetime of the project.

While he said the work was being carried out across the UK on a joint basis with the Home Office, he added "the only territorial police force sitting round that table that won't be allowed to recover VAT will be Police Scotland".

He told MSPs on the Justice Sub-Committee on Policing: "The likely cost of irrecoverable VAT over the lifetime of the new emergency services mobile communication system for Police Scotland is likely to be in the region of £64.7 million."

The Scottish Government has pledged to protect Police Scotland's day-to-day spending budget in real terms, a guarantee which SNP ministers have made for the five-year term of this Parliament.

Liberal Democrat justice spokesman Liam McArthur said: "This still appears to be inadequate with the suggestion that the overspend was £18 million, in August £21 million and in October the force suggested it was as high as £27 million."

He then challenged Mr Matheson on the 2026 vision for policing, saying it "is going to take a bit of a hatchet to staffing levels in order to get this overspend".

Mr Matheson said that was "completely wrong", adding the strategy was key because "it is important for a service such as the police service in Scotland to have a clear sense of direction about where it is going to head over the next 10 years and the way it is going to deliver its services".

However, he said the work also aimed to ensure the financial sustainability of Police Scotland going forward.

"Of course, action by the UK Treasury to bring Police Scotland's VAT status in line with other police services in the UK would be a substantial help," Mr Matheson said.

Conservative MSP Margaret Mitchell said: "The Scottish Government rejected proposals from the Treasury to channel funding for Police Scotland through Scotland's local authorities, and had it done that it wouldn't have had any liability for VAT.

"Isn't it the case that this was done because at that time the Scottish Government considered the projected savings would far outstrip the cost of VAT liability?"

The Justice Secretary responded: "Police Scotland is the only territorial force in the whole of the UK that is unable to recover VAT.

"Since the decision was made not to allow Police Scotland to do so, the Treasury have seen it within their ability to give other nationally-funded services the right to recover VAT. I think there is a level of double standards being played here.

"Our police and fire services should be treated on an equal footing with other territorial forces in the UK and be allowed to recover VAT."