After the 1992 general election, at which he narrowly held Gordon by just 274 votes, he again became the Trade and Industry spokesman. By 1994 he had become the Treasury spokesman. Whilst a Treasury spokesman it was Bruce who developed the idea of a 'penny on income tax'. At the 1997 general election Bruce's majority had risen again to 6,997. The Liberal Democrats had 46 MPs, more than they have had since before the 1920s. Paddy Ashdown created a new Shadow Cabinet system and Bruce became the Liberal Democrat Shadow Chancellor of the Exchequer. When Ashdown stood down in 1999 he contested the leadership of the party but came in third place. In 1999, under the new leadership of Charles Kennedy, became the Chairman of the Liberal Democrats until 2001, and 2000 - 2015 was the president of the Scottish Liberal Democrats.