The provision of free care for the elderly in Scotland could prompt tax hikes and be detrimental to other services if action is not taken now, it has been reported.

According to a report by Lord Sutherland to the Scottish parliament, providing free individualised care for older people could cost £1 billion per year, within 25 years, the Guardian attests.

This would represent the near tripling of current expenditure, which amounts to £280 million per year and could result in an increase in basic income tax of two pence per pound.

As a result of the report, Lord Sutherland has called upon the Scottish government to begin preparing for the impact of such a cost straight away.

"There are very serious demographic and societal challenges just around the corner which government needs to plan for now," he said.

Free personal and nursing care was made available to over 75,000 elderly people in 2002 after Lord Sutherland and the Royal Commission called for a fairer policy for this demographic.