The race for the Scottish Liberal Democrat crown intensified last night after former ministers Tavish Scott and Ross Finnie entered the fray.

Mr Scott, 42, the MSP for Shetland, is being tipped as the favourite as he already has the backing of another six of the party's 16 MSPs as well as Sir Menzies Campbell, the party's former UK leader, and five other MPs.

But Mr Finnie, 61, a list MSP for the West of Scotland, insisted he had been "very encouraged" from the soundings taken among colleagues.

They join Mike Rumbles, the MSP for West Aberdeenshire and Kincardine, who was the first to announce his candidacy last week just hours after Nicol Stephen, who has been the LibDem leader at Holyrood for three years, announced he was stepping down for family reasons. He will continue as MSP for Aberdeen South.

Yesterday, Mr Finnie, the former Rural Affairs Minister, said his colleagues felt he had the necessary qualities to lead his party in Scotland.

"They see the question of experience, of sound judgment, of an ability to communicate, a sense of humour; all allied to an absolutely passionate belief in liberal democracy," he said. Mr Finnie insisted that he offered a sharper campaigning edge, noting: "I don't think we are projecting ourselves as Liberal Democrats."

He argued that far too many people were uncertain of the LibDem message and every action of the party had to emphasise the party's values.

He denied the party had made a mistake in not going into coalition with the SNP, adding he was also relaxed about a referendum on more powers for Holyrood.

Later, Mr Scott, a former Transport Minister, announced his candidacy and declared that he wanted to lead the party at a "vital time" in Scottish politics and to "energise our party with new thinking and a fresh approach that speaks to the needs and concerns of Scotland".

He said families were "feeling the pinch" over the rising cost of food and housing. "Scots are asking their government for help but their voices are being drowned out by an ever more acrimonious and pointless feud between the SNP in Edinburgh and New Labour at Westminster. That's not good enough.

"Our party must speak to Scotland's people about those things that most concern them and not just those that most interest politicians."

The result of the leadership ballot is due on August 26.