HENRY McLeish has warned that voters are no longer clear what Scottish Labour stands for following the party's decision to review popular Government giveaways.

The former first minister said the party is suffering from an "identity crisis" and must develop a "recognisable philosophy before it challenges the SNP on spending priorities. Writing in Holyrood Magazine, Mr McLeish backed Scots Labour leader Johann Lamont's plans to review a range of universal entitlements, including free prescriptions for all and free university tuition.

He also supported her criticism of the council tax freeze, arguing Government policy was damaging to councils' long-term interests, and makes more councils dependent on central government and less responsible for the money they spend". However, he defended other giveaways, warning: "Attacks on the SNP's political priorities could be dangerous as the public remains supportive of many of the SNP Government's reforms."

Mr McLeish said Labour should use its review of Government priorities to develop a clear philosophy.

He said: "Some fundamental issues of philosophy, principle and values have to be agreed in order to answer the question, what does Labour stand for?

"For most Scots, the answer is not clear. The party ignores, at its peril, the confusion that exists in electors' minds about what Labour stands for."

An SNP spokesman said: "Henry McLeish cuts right to the heart of the crisis facing Labour in Scotland. They are now joined at the hip with the Tories."