MSPs have voted in favour of SNP plans to reform income tax rates in Scotland.

Under the changes, which were approved by 67 votes to 50, both the higher and top rate of income tax will be increased by 1p, rising to 41p and 46p respectively.

In addition, the Scottish Government will levy a new intermediate rate of 21p on income between £24,000 and £43,430.

But the increase in the personal allowance - the amount people can earn before they start paying income tax - together with the introduction of a 19p "starter rate" on earnings between £11,850 and £13,850 means that most Scots will pay less in 2018-19 than in 2017-18.

The net effect of the reforms is that around 1.4m people - 55% of Scottish workers - will be better off.

Finance secretary Derek Mackay insisted the changes he is bringing in will mean seven out of ten taxpayers north of the border will be better off in 2018-19.

He said: "Scotland is set to become the lowest taxed part of the UK. Our progressive reforms to income tax will deliver greater tax fairness and additional funding to protect vital public services.

"I'm confident that these proposals will deliver the best outcome for the people and the economy of Scotland. The best deal anywhere in the UK."

The Scottish Fiscal Commission confirmed earlier this month that the reforms will raise an extra £62m for the national coffers.

The extra revenue comes from a change to the higher rate threshold and the extension of the public sector pay rise.

Scottish Conservative shadow spokesman for finance Murdo Fraser said: "This rise in income tax penalises hardworking Scottish families.

"It breaks a promise made by the SNP in 2016, and repeated dozens of times since.

"And, in making Scotland the highest-taxed part of the UK, it will condemn us to more years of sluggish economic growth, depriving the government of much-needed tax revenue as a result."

While the Tories attacked the SNP over tax rises, Labour criticised the Scottish Government for not being radical enough.

Holyrood finance spokesman James Kelly said the devolution of income tax powers gave Scottish ministers the "chance to present a bold and radical budget".

He added: "The SNP tax plans fall massively short of what is required and it is the people of Scotland who will suffer, with a quarter of a million children living in poverty, performance in education on the slide, as the economy continues to falter and there is an NHS crisis where people struggle to get GP appointments."

But the Greens - who have already struck a deal with the Scottish Government to support their budget - hailed the changes.

The party's co-convener Patrick Harvie said: "What today's rate resolution achieves - and I'm very pleased the Greens have played a pivotal role in bringing us to this point - is a huge step, a bold reform, towards progressive use of income tax powers and reducing inequality and funding our public services."