Plans to merge prison and probation services were described by the Scottish Liberal Democrat leader, Nicol Stephen, yesterday as the most radical proposals to tackle crime since the advent of Holyrood.

Outlining a manifesto commitment to abolish the Scottish Prison Service and replace it with a new Scottish Custody and Rehabilitation Service, Mr Stephen said the current culture and structure of the prison service was failing to cut crime.

The LibDem leader also suggested at the weekend that he could seek the post of First Minister as the price of any coalition deal, even if his party remained the junior partner.

The SLD's new penal policy envisages a 20-year modernisation programme for the prison estate, with more community-based solutions, and greater links between his proposed new prison and rehabilitation service and new Community Justice Authorities.

He said: "We must move away from very short-term sentences and allow tougher community sentences to be introduced. This new approach will be much more effective in cutting offending.

"Liberal Democrats in Scotland are determined to take action which has a real impact on cutting crime. We will radically change our prison service and for the first time give the new custody and rehabilitation service a community role."