Scotland could lose out on almost £2 billion over the next five years due to weaker income tax growth compared to the rest of the UK, researchers have warned.

A report published by IPPR Scotland states any extra money through the country's income tax rises is expected to be "fully lost".

The think thank has urged the Scottish Government to take action to tackle low pay, arguing wage growth of 1% above projections for each of the next three years could lead to £750 million more tax revenue by 2022-23, almost twice the amount raised by a 1% tax rise.

It found Scotland will lose just under £1.8 billion through weaker growth in income tax revenues per head of population than in the rest of the UK.

Rachel Statham, economic analyst at IPPR Scotland, said: "On income tax, Scotland is running to stand still.

"Despite welcome income tax rises in Scotland in recent years, we're due to be worse off because of weaker income growth in Scotland compared to the rest of the UK.

"Our analysis shows that efforts to make our economy fairer will also deliver stronger economic performance in Scotland.

"Boosting the performance of lower-paid sectors by raising productivity could lead to a win-win-win - reducing inequality by tackling low pay, increasing tax revenues and strengthening the whole economy.

"This is the prize the Scottish government's inclusive growth agenda could hold but we need to give it teeth through bold policy action."

She added: "We need ambitious words on inclusive growth to be matched by equally ambitious action.

"That way we can deliver pay rises for the lowest earners, increase tax revenue for public services, and deliver a stronger and fairer economy across Scotland."