THE Scottish Executive is facing a £7million compensation bill after prisoners were denied the right to vote in May's Holyrood elections.

MINISTERS today denied they are facing a £7million compensation bill for prisoners denied the right to vote at the Holyrood elections in May.

Three Court of Session judges yesterday ruled banning prisoners from voting breached the European Convention on Human Rights and made a formal declaration of incompatibility.

Scotland has 7000 prisoners, and some experts claim a recent court ruling in Europe sets £1000 as a proper level of compensation - suggesting a potential bill of up to £7m.

Awarding compensation could be the only way to prevent the elections being caught up in legal actions from prisoners.

At least one law firm acting for prisoners is to seek an interim interdict against Scottish ministers to halt the elections.

If they fail, lawyers will seek compensation instead. The council elections due on May 3 could also be affected.

But Scotland Office Minister David Cairns today insisted May's ballot would go ahead.

He said the unlawful blanket ban on prisoners voting, which is the responsibility of UK ministers and is the subject of a consultation, would not lead to a compensation bill of £7m.

He added: "That bill would only exist if every prisoner, in every Scottish jail, was deemed to have the right to vote and therefore they all got the maximum compensation.

"Well, they do not all have the right to vote. The judges haven't said every prisoner has the right to vote, what they have said is a blanket ban against all prisoners is incompatible.

"We are not even consulting on giving every prisoner the right to vote - that's a non-starter."

Mr Cairns admitted there could be some compensation to pay, which the UK Government would meet.

"But to talk about £7million is absolutely fanciful," he added.

The Court of Session had been considering the case of William Smith, a convicted drug dealer, who took legal action after he was barred from voting in the 2003 Holyrood elections.

They upheld a decision not to allow him to register while serving a five- year sentence in Glenochil prison, near Alloa, but made the declaration of incompatibility.