Scotland In Crisis After Lib Dems Refuse Coalition with SNP

Scotland was in turmoil last night after Liberal Democrat leader Nicol Stephen refused Alex Salmond's offer of a share in a coalition government. Stephen demanded that the SNP instantly drop their demands for a referendum on independence.

In a powerful statement issued after two days of talks Stephen said that the way was now open for nationalists to try to form a minority government as the Liberal Democrats had earlier also categorically ruled out a coalition deal with Labour. It now appears that a minority SNP administration is Mr Salmond's only option.

The Scottish Parliament will meet to swear in new MSPs on Tuesday and have only 24 days to elect a First Minister or a new election must be called.