Scottish defeat leaves problem for Brown

By Katherine Baldwin

EDINBURGH (Reuters) - Scottish nationalists committed to independence from Britain became the biggest party in the Scottish parliament on Friday in elections which left a political headache for Prime Minister Tony Blair's successor.

The Scottish National Party (SNP) ended 50 years of Labour dominance in Scotland in Thursday's vote and Labour suffered heavy losses in local council elections in England and lesser losses in elections to the devolved Welsh assembly.

With Blair expected to announce next week he is stepping down as prime minister after a decade in power, he leaves a poisoned chalice to Chancellor of the Exchequer Gordon Brown, the 56-year-old Scot who is almost certain to succeed him.

Brown must wrestle with the problem of how to revive support for the Labour Party, whose popularity has slumped because of opposition to the Iraq war, a series of political scandals and a general sense of voter fatigue with the party.

Added to that he could now face the tricky problem of managing relations with a Scottish executive dominated by the SNP which has pledged to hold a referendum in three years on independence from Britain.

"This is a historic moment," SNP leader Alex Salmond said. "The Labour Party has no moral authority left to govern Scotland".

Brown received one piece of good news on Friday when one of his last potential rivals to succeed Blair as Labour Party leader and prime minister announced he would not stand.

"I am not going to run in the leadership election," former interior minister Charles Clarke told the Times newspaper. He said he had considered a challenge but believed there was no appetite in the party for a divisive contest.