Scotland appeared to be moving towards a referendum on independence after the head of the country's Labour Party supported the idea for the first time, predicting Scots would vote to keep union with England.

The pro-independence Scottish Nationalist Party (SNP) formed a minority government after Scottish polls last year, breaking a long Labour hold. Scotland dispatches many Labour members to the British Parliament and its secession could change the balance in London, where a Labour government struggles to keep support.

Scottish First Minister Alex Salmond said at the weekend the SNP would seek legislation in 2010 for a referendum on independence after a two-year-long national dialogue.

Scottish Labour leader Wendy Alexander, who had opposed a referendum along with Conservative and Liberal Democratic parties, appeared to see a referendum as a way of ending uncertainty over the SNP demands.

"I don't fear the verdict of the Scottish people," she told BBC Scotland on Sunday. "Bring it on." Ms Alexander said the SNP appeared to be toying with the electorate, saying 'we want this (independence), it is the reason we came into politics, but by the way we are frightened to bring the matter forwards'."

Support for independence after 300 years of union with England varies from poll to poll. A YouGov poll in Saturday's Times newspaper gave a figure of 19 per cent, while other analysts have put it at up to one third in the nation of just over five million people. The SNP said at the weekend its own poll-of-polls showed 41 per cent supported independence.

Ms Alexander said there had been "tactical discussion" with Labour leaders in London on the referendum issue. The Times said it was understood Prime Minister Gordon Brown now saw a referendum as the best way to weaken Salmond's grip on power in Scotland.

Labour lost heavily in local elections in England and Wales last Thursday, and was beaten into third place in the overall vote behind the leading Conservatives and the Liberal Democrats.

Some political analysts say Mr Brown, who represents a Scottish constituency, can ill afford any loss of seats in Scotland in a future nationwide election.