MSPs will sit in the new parliament building next year

Confirmation of a possible extra £37m increase for the Holyrood project came from Presiding Officer George Reid.

It followed an evening meeting of the parliament's corporate body.

First Minister Jack McConnell was said to be surprised and angry.

Mr Reid said he had demanded a full breakdown of the figures.

"I am furious and dismayed at this latest report, especially in view of assurances given to the corporate body only four months ago, that the estimated completion costs were £338m," he said.

"I share the anger and frustration which MSPs and the Scottish people will understandably have at news like this coming out of the blue."

I share the anger and frustration which MSPs and the Scottish people will understandably have at news like this George Reid, Presiding officer

The parliament's cost consultants reported to the "progress group" of MSPs who are charged with monitoring the project.

The progress group then reported to the corporate body - the small group responsible for the functioning of parliament, who will effectively have to sign the cheques for the costs.

Mr Reid said all members of the new complex's design and construction team had been summoned to meet the corporate body next Tuesday.

"I have demanded a full breakdown of the reported costs and the current programme," he said.

"There are questions which require immediate answers - including why our professional advisers failed to spot and report the increase sooner."

After that meeting, the corporate body will write to Holyrood's finance committee with "a full report" on the latest position.

Reaction to the latest increase was swift and furious.

Once again the Scottish taxpayers are having to face another extortionate bill David McLetchie Conservative leader

David McLetchie, leader of the Scottish Tories, said: "Once again the Scottish taxpayers are having to face another extortionate bill and will be asking which schools, hospitals and roads will not be built.

"There has to be a full, open and independent inquiry that examines this whole sorry saga from day one.

"That would avoid distracting those charged with getting the project completed on time.

"But I would stress this inquiry must be far more than a simple audit trail and must look at the political decisions taken - and call as witnesses all those who were involved," said the Tory leader.

Scottish National Party leader John Swinney also hit out at the announcement.

"People have had enough of their pockets being picked to pay for the new parliament building," he said.

"It is long past time to call a halt to the continual cost increases.

"Not a penny more should be spent on the project and a budget cap should be introduced. Enough is enough."

Not a penny more should be spent on the project and a budget cap should be introduced. Enough is enough John Swinney, SNP leader

It also emerged that a promised inquiry by First Minister Jack McConnell into the delays and spiralling cost of the Holyrood complex will still be under way when it opens next year.

Fierce critic of the project, independent MSP Margo MacDonald condemned the latest estimate.

"MSPs have been continually misled and drip fed half information," she said.

"The investigation will have to take account of the need to cap any further costs associated with this project.

"But I am absolutely certain that we can start now before the project is completed because the public have a right to know."

A spokeswoman for the first minister later said: "The first minister is surprised, extremely concerned and angry.

The first minister is surprised, extremely concerned and angry Spokeswoman for first minister

"He has asked George Reid to do all that he and the corporate body can do to challenge and control this increase.

"This makes the first minister's investigation even more important.

"He is making progress on the plans for that investigation and will be taking these forward soon."

The cost of the Holyrood project had been put at £324m for the building itself, and a further £14m for landscaping.

This compares with an initial estimate of £50m in the run-up to devolution, and before a site or design was chosen.

That figure rose to £195m by February 2001.