CUTTING Air Departure Tax will cost the Scottish budget almost £190 million, Labour's transport spokesperson has warned.

Scottish Government Finance Secretary Derek Mackay announced plans to reduce the tax by 50 per cent 2018-19 draft budget.

However, Labour say this will amount to a £189million loss from Scotland's public finances, and called on him to reverse the move.

Analysis from the Scottish Parliament Information Centre (SPICe) shows that ADT would be expected to raise £378million in 2021-22 if no cuts were made.

Transport spokesperson Neil Bibby MSP said that lowering the tax would cost the Scottish Budget a sum greater than the £120million Pupil Equity fund, which is aimed at tackling the education attainment gap.

Mr Bibby said: "The scale of the price of the SNP’s aviation tax cut is now clear. This tax break will cost more than the government’s programme for dealing with the attainment gap.

"It simply cannot be right that when we have a shortage of teachers, a recruitment crisis, and falling numeracy and literacy standards, the SNP is planning to lower taxes for frequent flyers. This won’t make Scotland any greener.

"It is time for Derek Mackay to abandon this policy before he unveils his draft budget later this year. If he doesn’t, he will need to explain to the public where the £189million of taxpayers’ money will be taken from to fund this tax cut."

However, a spokesman for Derek Mackay refuted the claims, saying: “Neil Bibby has still to apologise for spreading false smears about Scotrail trains earlier in the week, and until he does, no one can trust a word he says on anything.

“The fact is, Labour are still unable to offer any credible suggestions as to how they would boost Scotland’s international connectivity. Indeed, now that they have fallen in behind the Tories in backing a hard Brexit, the only thing they are promising is to put up more barriers.”