Two Scottish Labour leadership hopefuls put pressure on the SNP to do more for Scots suffering as a result of the credit crunch.

Alex Salmond, the First Minister, has already asked the UK Government to curb rising fuel prices, but Cathy Jamieson and Iain Gray demanded that the SNP take responsibility and help to tackle debt.

The rising cost of living was widely blamed for Labour's failure to hold on to Glasgow East in last month's by-election.

Mr Gray, the former Enterprise Minister, called for an increase in funding for community groups that help to tackle debt and offer money advice as well as affordable credit.

Speaking on a visit to the Pollok area of Glasgow, he said: “Increased oil prices, food prices and the credit crunch are hitting families hard across Scotland. However, all we have heard from Alex Salmond is the usual pointing the finger at Westminster.

“The truth is that the SNP have powers at their disposal to help families through these difficult times, but instead they are using the usual tactic of blaming everything on the UK Government.”

Ms Jamieson called on Scottish ministers to increase funding for voluntary agencies and suggested that credit unions should be encouraged to offer mortgages. She also demanded a reversal on the decision to increase civil court fees by 50 per cent.

“With the ongoing global financial situation it's vital that access to justice is as wide as possible. I want to ensure that the number of repossessions in Scotland is as small as possible. but the system is not helping people trying to hang on to their homes.”

Ms Jamieson pointed to England, where Caroline Flint, the UK Housing Minister, promised free legal help for families who faced having their home repossessed because of the credit crunch.

Criticising the Nationalist government has been a theme of the leadership contest, with Andy Kerr, the third leadership candidate, accusing Mr Salmond yesterday of hypocrisy over the First Minister's calls for a windfall tax on energy companies.

He said that Mr Salmond had criticised Mr Brown and the Labour Government for introducing the Petroleum Revenue Tax on oil companies operating in the North Sea.

“Scots shouldn't be fooled by Alex Salmond's shameless hypocrisy in calling for a windfall tax on energy companies,” he said. “After all, it's only a matter of months since he was at the forefront of attacks on the Prime Minister and the Labour Government over their introduction of a Petroleum Revenue Tax for oil companies.”

The SNP in turn attacked Mr Gray's promise to “reform or replace” the council tax, pointing out that he had defended Westminster's plan to retain £400 million worth of council tax benefit if the Nationalists scrapped the charge. Joe Fitzpatrick, an SNP MSP, said: “Unfortunately for Iain Gray, he has voted against changes to local taxation twice in this Parliament, joining forces with the Tories in an unholy alliance to keep the council tax whilst his party has supported this unfair tax in office for 11 years.”

Responding to the attack, Mr Gray said: “If you replace the council tax with a local income tax, then you'll lose council tax benefit. The SNP have known this all along but rather than admit this they're trying to blame the UK Government for their own failings.

“I believe in a property tax, and a reformed council tax would not lose council tax benefit. We must bring forward proposals for a fairer local tax, working where possible with other opposition parties, to fill the vacuum left by the SNP's incompetence.

“This leadership election should be about taking the fight to the SNP and focusing our attack on Alex Salmond. They're vulnerable on this issue and they know it.”

Murdo Fraser, the deputy leader of the Scottish Conservatives, accused the leadership candidates of wanting more autonomy from Gordon Brown while shying away from taking him on. “The Scottish Labour leadership contenders are either suffering from collective amnesia or political ignorance,” he said.

“People are sick and tired of the ever-rising cost of living under Labour and a Government dithering like some latter-day Corporal Jones, running around saying ‘Don't panic' whilst clueless about what to do.”

The new Labour leader will be announced on September 13.

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