A new income tax band has been introduced in Scotland meaning higher earners will pay more tax.

In the Scottish Budget, Deputy First Minister Shona Robison said the changes would bring in an extra £82 million a year.

The new advanced rate band will apply 45% tax on annual income between £75,000 and £125,140, with around 114,000 people expected to be affected.

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Robison also increased the top rate by 1p in the pound, to 48%, and said the thresholds for the lower rates would rise with inflation.

Council Tax, as expected, is to be frozen and local authorities compensated had they increased the tax by 5%.

Robison said: “We are proud that Scotland has the most progressive Income Tax system in the UK, protecting those who earn less and asking those who earn more to contribute more. “This in turn allows us to provide a more comprehensive set of services than in the rest of the UK.

“These targeted tax decisions are expected to increase our Income Tax revenue by £389m and have been carefully balanced with the needs of individuals, businesses and the wider economy while ensuring we continue to build upon our progressive approach to taxation.

“Our decisions on tax in this budget – including both Income Tax policy changes and the freeze in Council Tax – provide a net benefit to around 60% of Scottish households, with around 80% of households paying no more tax as a result of these measures.”

The UK Government said the tax rise “punishes” hard work.

Alister Jack, Scottish Secretary, said: “Today’s Scottish Budget widens even further the tax differential between Scotland and the rest of the country.

“Making Scotland the highest taxed part of the United Kingdom is bad for our economy. It deters business investment and punishes hard-working people."

The new tax bands in Scotland are:

Personal allowance up to £12,570=0%

Starter rate 12,571 -£14,876=19%

Scottish basic rate £14,877-£26,561=20%

Intermediate rate £26,562 -£43,662=21%

Higher rate £42,663-£75,000=42%

Advanced rate £75,001-£125,140=45%

Top rate above £125,140=48%