SCOTLAND'S finance secretary Derek Mackay has vowed that Scotland's new tax system will protect free prescriptions, free tuition and free personal care.

Mackay made the claim as changes to Scotland's income tax system are due to come into force. A new five-band system which will cut bills for lower earners but raise them for others.

Mackay's plans will see two extra bands added, on either side of the basic rate – a 19p "starter" rate for lower earners and a 21p "intermediate" rate for those on middling incomes.

This, coupled with an increase to the tax-free allowance included in the UK budget, will see 70 per cent of Scots pay less tax in the coming year than they do now, while 30 per cent will pay more.

The changes will also add 1p to each of the higher and additional rates, making them 41p and 46p respectively, while limiting increases to the higher rate threshold to raise extra funds for local services and a public sector pay deal.

Mackay said the government's plans will "deepen our social contract with the Scottish people" by protecting funding for free NHS prescriptions, free university tuition and free personal care.