While the starter and basic rates will rise, the middle, higher and top rate thresholds will be frozen.

Finance secretary Kate Forbes said: ‘Income tax rates next year will remain unchanged, while the thresholds for the starter and basic rates will increase, but the higher and additional rate will be frozen.

‘This Budget is delivering a more progressive approach to tax.’

The adjustments to thresholds will see a small increase in total income tax revenue, up fro £12,263m in 2021-22 to £13,671m in 2022-23.

This means that the 19% starter rate will now range from £12,500 to £14,585, while the 20% basic rate kicks in at £14,585, up to £25,158. The 41% higher rate runs from £43,450 to £150,000, with the 46% top rate effective for all earnings over £150,000.

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