The latest report into Polmont YOI, carried out by HM Inspectorate of Prisons, found overcrowding to be so severe that increasing numbers of young offenders are being reclassified as adult prisoners and moved elsewhere.
The inspection found that while the practice of "slopping-out" had stopped thanks to two new halls at the institute, more and more prisoners were having to share cells due to overcrowding.
Dr Andrew McLellan, Scotland's chief inspector of prisons, said: "The advantage gained for these young men by the opening of new halls is threatened by overcrowding. The question must now be asked whether or not it is realistic to seek to hold all convicted prisoners under 21 years at Polmont."
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