MORE than one million Scots will pay higher income tax than those earning the same elsewhere in the UK under plans set to get the go-ahead today.

MSPs are due to vote on the Scottish Government’s tax proposals ahead of the Budget being pushed through Holyrood tomorrow.

Finance Secretary Derek Mackay said the changes will ensure an extra £428 million can be raised over the next year to help protect public services and boost spending on health.

But critics said the move – which will see new 19p and 21p bands introduced, while the upper and additional rates both rise by 1p – would not be enough to reverse Westminster tax cuts.

Scottish Labour’s shadow finance secretary James Kelly said: “These tax changes won’t deliver the funding our public services need and will not come close to reversing the Tory tax cut for the richest few.

“With 260,000 children living in poverty in Scotland a penny on the top rate simply doesn’t cut it.

“Lifeline services are facing huge cuts but the SNP’s response is to tinker around the edges of our tax system rather than deliver the real change it needs.

“Labour would ask the richest to pay their fair share with a 50p top rate of tax, and use the revenues to properly fund public services and tackle poverty.”

The Scottish Conservatives warned against hiking taxes while Scotland’s economy continues to lag behind the rest of the developed world.

The party’s shadow economy secretary Dean Lockhart said: ”The SNP are about to break a central manifesto promise and raise income taxes while the economy is falling far behind Europe and the UK.

“It is now clear that, after a decade in power, the SNP is responsible for the lowest trends in economic growth for 60 years.”

But Mr Mackay insisted his plans, which are set to be supported by the Greens to push them through Holyrood, would see more than two thirds of taxpayers paying less tax on their current income.

He said the new starter rate of income tax, combined with an increase in the personal allowance, will result in 70 per cent of all income taxpayers paying less tax than they do this year.

He added: “The Scottish Government has faced continued austerity from the UK Government. Over a ten year period, Scotland’s block grant will have been cut by £2.6 billion in real terms and we face a £500 million real terms reduction in spending on day-to-day services over the next two years.

“Our progressive approach to reforming income tax will deliver greater tax fairness and protect the lowest earning taxpayers in Scotland.”