By Steve Bargeton, political editor

There were signs yesterday the UK Government may back a referendum on Scottish independence.

One of Prime Minister Gordon Brown’s closest colleagues said he had no fear of a referendum.

International Development Secretary Douglas Alexander gave public backing to his sister Wendy, leader of the Scottish Labour Party, who at the weekend accused the SNP of running scared by not producing a referendum bill until 2010.

Ms Alexander challenged First Minister Alex Salmond to “bring it on,” and yesterday her brother echoed that sentiment.

“I have never feared an independence referendum, because I’m in the mainstream of Scottish public opinion in wanting Scotland to stand tall but not to walk out of the UK,” he said.

In March Ms Alexander said she was opposed to a referendum, “because I don’t believe in independence—it’s as simple as that.”

But yesterday Mr Alexander refuted suggestions his sister had done a U-turn on the issue.

“She’s long believed in the case for a referendum in terms of fundamental constitutional change,” he said.

“She argued the case in an IPPR (Institute for Public Policy Research) pamphlet before 1997 for a referendum when it wasn’t a particularly popular thing to do within the Labour Party, to solidify the devolution settlement.

“In that sense, I share with Wendy no fear at all of the SNP’s proposal for a referendum, because I’m convinced that people in Scotland would decide to stay part of the UK.”

Within the Labour Party there are those who believe an early referendum would call the SNP’s bluff and damage Alex Salmond.

There are reports talks have taken place at a senior level within the party on a snap referendum to wrong-foot Mr Salmond.

It has been suggested Ms Alexander and Mr Brown have consulted colleagues on the possibility.

However, there is a danger that, having now indicated the leadership on both sides of the border are relaxed about a referendum, the SNP will now call their bluff to support one.

Sir Kenneth Calman, chairing the constitutional commission set up by Labour with the support of pro-union parties, has not ruled out that body’s eventual recommendations going to a referendum, but said this would be a matter for the Scottish Parliament.

But the commission is expressly not considering independence.

Deputy First Minister Nicola Sturgeon yesterday welcomed the change in stance from her Labour opponents.

“We are delighted that Labour’s disarray has forced Ms Alexander into a massive U-turn, it shows that the movement of opinion is running strongly in our favour as Labour crack under the pressure of popular opinion in favour of a referendum,” she said.

“We will stick to what we offered the people—demonstrating credibility in government, engaging with the people through our national conversation and bringing forward a referendum in 2010.

“This is a timetable that was set out in our manifesto on which we fought and won the election, and we will continue proceeding on that organised timetable as opposed to the chaotic U-turns of Labour.

“Meanwhile, Douglas Alexander’s attempts to make this major U-turn look like a pre-arranged plan is an insult to the people of Scotland’s intelligence and bordering on ridiculous—it is clearly a case of Wendy bending to the Scottish popular will.

“Labour’s trials and tribulations may be good for amusement, but are not the stuff of politics.

“Labour are buckling under the pressure as they melt down south of the border while polls continue to surge in support of the Scottish Government and SNP north of the border.

“We are pleased that the ice is cracking in support of the Scottish Government’s overwhelmingly popular policy to give the people the right to decide in a referendum—I hope that the other unionist parties come on board.”