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But the Imps fought back, levelling through a penalty and a 90th minute goal from Ben Futcher.
United were not to be denied though, and their new-found mental strength and confidence came to the fore with a 93rd minute goal from Butler sealing three points to take the Iron back to the top of the league after a seven day absence.
Laws said: "It was the right result, I am delighted with the way we played. There was some excellent football and we gave them a lot of problems.
"At times we tended to overplay as we have not had that type of luxury against Lincoln in the past.
"When they got back to 2-2 in the past we would have collapsed, but we kept going and showed a lot of metal.
"We showed great resolve and were the better side on the day. Lincoln worked
ever so hard but they never really hurt us.
"When they got back into the game they had a head of steam and put us under
pressure, but we are showing more metal and not many teams will hold us."
City boss Keith Alexander was very critical of this side, commenting:"We
were very poor from start to finish, we ought to have come away with a
point. We did well to get back into it at 2-2 and should have had a point.
"I am very disappointed, you can't let good teams like Scunthorpe come back
at you."