John Swinney has increased income tax for higher earners while freezing the thresholds and rates for those on lower earnings.

The changes see anyone earning more than £43,622 paying more in income tax.

Swinney increased the higher rate from 41% to 42% and the top rate from 46% to 47%.

He lowered the earnings threshold of the top rate from £150,000 per year to £125,140 per year, in line with the UK Government’s earlier decision.

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He said there was no change to the starter, Intermediate or basic rate of tax.

The tax rates now mean the personal allowance up to £12,570 remains zero tax

The starter rate, between £12,571 to £14,732, stays at 19%

The Scottish basic rate, £14,733 to £25,688 stays at 20%

Intermediate rate, £25,689 to £43,622, stays at 21%

The Higher rate of £43,633 to £125,139 goes up to 42%

The top rate, on earnings above £125,140, goes up to 47%

Swinney said he was asking people on higher earnings to pay an extra penny on income tax for a “specific purpose”.

Swinney said: “We are asking people on higher incomes to contribute more than those on lower incomes.”

He added the decisions were “guided by our values and commitment to fairness”.

The Deputy First Minister said the income tax changes would raise almost £130m for spending in the next year.

Wider Tax changes, he said would raise in total more than £550m.

The cash, he said, will be used towards spending on the NHS.

Swinney said the budget was being delivered in the “most turbulent financial context most people can remember.”

He cited the war in Ukraine increasing energy bills and Brexit and the UK mini-budget earlier this year pushing up inflation.

The budget included an extra £500m for local government across Scotland as councils face huge budget deficits.

In Glasgow alone, the spending gap is £120m for the next year.

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He confirmed the Scottish Child Payment will remain at the current level of £25 per week and other benefits administered by the Scottish Government will increase in line with inflation at 10.1%.

He also said money would be available to pay for an increased Living Wage of

Swinney also revealed that the £20m earmarked for an independence referendum will now be used for another purpose after the Supreme Court said it was not within the Scottish Parliament’s powers to hold one without the consent of the UK Government.

Swinney said: “We respect the decision of the Supreme Court” but added that the Scottish should have the right to decide.

He said: “At this time I must make full use of resources.”