THE SNP’s replacement for stamp duty raised £55m less than expected last year.

Land & Buildings Transaction Tax (LBTT) contributed £483m towards the Scottish budget, more than 10 per cent below the Scottish Government forecast of £538m.

The Tories claims the SNP had “jammed up the [housing] market” by setting rates too high.

The first wholly tax devolved set by the Scottish Parliament, LBTT has previously been blamed for depressing mid and high-end house sales since it was introduced in 2015.

Although the first £145,000 of a house sale is tax-free, buyers pay 2 per cent on the next £105,000 of the price, 5 per cent on the next £75,000, then 10 per cent on next £425,000, and 12 per cent on everything above that.

The figures emerged as Tory Chancellor Philip Hammond warned the SNP not to hike income tax in next year’s budget to find extra money for public services.

Nicola Sturgeon has called for cross-party debate on more “progressive” tax rates, paving the way for changes to the 20p basic, 40p upper or 45p additional rates in 2018/19.

On a visit to Dundee, Mr Hammond said decisions on devolved taxes rightly lay with the devolved administrations, but added: “Personally, I think one should be cautious at a time of uncertainty. There is uncertainty created by the Brexit process [and] by the pressure on real incomes from the spike of inflation following the currency depreciation last year.

“I think one should be cautious about increasing the pressure on household incomes through taxation at a time like this.”

Asked if he was looking at income tax rises across the UK in his own budget in November, he said: “I do not believe on a UK-wide basis that now is the time to be looking at significant tax increases.”

The latest LBTT figures are contained in the 2016/17 annual report of Scotland’s devolved tax agency, Revenue Scotland.

They show residential LBTT raised around £214m on house sales, plus a further £93m net on second home sales through the Additional Dwelling Supplement (ADS), which was introduced in 2016 to target buy-to-let landlords.

A further £177m was raised in non-residential LBTT.

Revenue Scotland also reported a better than expected return from landfill transaction tax, which raised £149m, or 12 per cent higher than the £133m forecast.

Overall, the two taxes raised £633m last year, some £38m below forecast.

However this was £61m up on 2015/16 thanks to ADS.

The report said there were increased efficiencies at Revenue Scotland, with running costs, call waiting times, and days taken to complete enquiries all down.

However there was a near 50 per cent leap in sickness rates, with the average number of working days lost rising from 6.4 to 9.4 per staff member.

Tory MSP Murdo Fraser said: “Not only is the SNP’s stamp duty changes harming those who want to move up the property ladder, it’s hitting the public purse too.

“The SNP set the rates too high, and that’s jammed up the market.

“That makes it tougher right across the housing market, including first time buyers, and costs tens of millions in tax receipts.

“The SNP was warned about these implications, but chose to ignore them.”

SNP Finance Secretary Derek Mackay said: “Revenue Scotland has continued to operate effectively and efficiently, with operating costs lower than last year and more than £1bn of tax collected over its first two years of operation.

“The report indicates that £633m was collected across the fully devolved taxes in 2016/17. That revenue has helped to fund our vital public services and support our ambition to create a more successful country, with opportunity for all to flourish through increased sustainable economic growth.”

Revenue Scotland Chairman Dr Keith Nicholson said: “Revenue Scotland strives to provide an efficient and effective service to Scotland’s taxpayers.

“The figures released in our annual reports today highlight that Scotland’s tax authority is an efficient and effective organisation that continues to deliver value for money.”

“An important milestone was also reached, with the amount of tax collected by Revenue Scotland in its first two years of operating exceeding £1bn.

“The total transferred to the Scottish Consolidated Fund between 1 April 2015, when operations began, and 31 March 2017 was £1.15bn.”