Holyrood voted for Finance Secretary Derek Mackay’s income tax plans which leave rates as they are.

While having the power to change tax rates, Mr Mackay in his budget set income tax the same as the rest of the UK.

It remains at 20% for basic rate, 40% for the higher rate and 45% for the additional rate for the highest earnings.

He initially wanted to increase the threshold for higher rate at £43,000 in line with inflation but not to the same level as the UK Chancellor who will increase it to £45,000.

But after a deal with the Greens to back his budget he agreed to free3e it at £43,000 meaning people on higher rate tax in Scotland will pay the same tax as before while others in the UK get a cut.

SNP MSPs voted for while Labour LibDems and Tories voted against. The greens abstained to allow the budget to get through.

Labour said the decision was a missed opportunity.

Alex Rowley, deputy leader, said: “We had a chance to give young people a better future by investing in child care, in education, in skills and in jobs; and we had the chance to provide better care when it is needed for those who deserve dignity and respect in old age.

“The SNP chose not to invest – the SNP chose to continue Tory austerity.”

It wanted to raise the basic rate by 1% and the Tories wanted the higher rate threshold to increase in line with the UK.

Mr Mackay said: ““Now is not the time to add to the burden of low and middle-income taxpayers as Labour would.

He added: “Now is not the time to be giving away a substantial tax cut as the Tories would.”