A recently created economic think tank has been forced to suspend its activities until the end of the year due to a lack of financial support.

Fiscal Affairs Scotland, which only began work last year, has been unable to find sources of funding to make it viable in the long term.

The leading research body has produced a string of highly regarded reports on the economic and tax issues facing Scotland, including commentaries on the Scottish budget, the funding challenges facing local councils, and a series of monthly bulletins on important economic issues affecting the country.

The chair of the board of trustees, Robert Black, the former Auditor General for Scotland, claimed a body such as Fiscal Affairs Scotland is needed now more than ever given the extra tax powers that are due to be devolved.

He said: "Fiscal Affairs Scotland has started to play a very important role in the good government of Scotland by providing objective, evidence-based analysis and commentary on some of the big issues of tax and spend in Scotland.

"In a matter of months, Scotland will have 40% of the taxes which are raised in the country either assigned or devolved to it, and it is also to be given greater powers over the welfare budget.

"We need a body like Fiscal Affairs Scotland which is trusted by citizens, the public sector and the business community to provide objective analysis and commentary on taxation, spending and productivity."

The think tank's executive directors have frequently been asked to provide analysis and comment for the media, as well as speaking at conferences and seminars.

However, a lack of stable funding means they will be unable to continue with their work until the New Year.

Discussions with universities in Scotland and potential private sector funders are continuing in the hope that the charity can carry on with its work in the future.

Mr Black added: "The trustees will meet again around the end of the year to look at the options, but in the meantime, Fiscal Affairs Scotland does not have the resources to continue."

The body, which claims to be politically neutral, produced one of its first reports just ahead of last year's independence referendum looking at the financial pros and cons of independence.

It has also analysed topics such as Scottish Government oil and gas forecasts, as well as Scottish GDP statistics.