Income tax rates are to be frozen in Scotland, if the SNP win the Holyrood election.

In a speech on Tuesday, Nicola Sturgeon unveiled that if she is re-elected as First Minister she would not alter the three income tax bands in Scotland. The SNP would however not pass on the threshold changes for the 40p band which was announced by the Chancellor at his budget last Wednesday.

The First Minister said: “In setting out our proposals we have balanced the need to invest in and support our public services with a recognition that many households are still facing difficult economic challenges, and with the need to grow the Scottish economy.

“We will not allow our public services to pay the price of an inflation busting tax increase for the highest earning 10% of the population. We think that is the wrong choice and today we set out our alternative.

“We will freeze the basic rate of tax for the duration of the next parliament. We do not believe it is right that those on low incomes are asked to pay for austerity. That does not tackle austerity, it simply shifts the burden to those who can least afford it.

“No taxpayer will see their bill increase as a result of these Scottish Government proposals.”

Under the plans the 40p threshold would rise with the rate of inflation instead of moving to the Chancellor's new starting point of £45,000.

Sturgeon continued: “That means next year the threshold for higher rate taxpayers will go from £43,000 to £43,387.

“That increase will prevent higher rate taxpayers from receiving a real terms cut in their tax bills, but nor will they see their bills increase.

“By adopting a different path to the UK Government we could generate more than £1 billion of additional revenues, enabling us to protect the public services we all rely on. We believe that this proposal is reasonable, it is balanced and it is fair.”

Nicola Sturgeon also unveiled plans to set a distinctive Scottish personal allowance despite base rate of income tax not being devolved. To do this the SNP would use the band creating power to create a 0% rate.

The SNP were accused of having "bottled it" by Scottish Labour leader Kezia Dugdale for not pledging to raise the top rate of tax to 50p.

Dugdale said: "Today, Nicola Sturgeon had the chance to be bold, but instead what’s clear is that the SNP will make no significant changes to income tax and have broken their promise to scrap the unfair council tax.

"Instead of ending austerity in Scotland, this means billions of pounds of Tory cuts passed on to Scotland’s public services. Nicola Sturgeon must now tell people where these cuts will fall.

"A year ago, the SNP said they would support a 50p tax rate on people earning more than £150,000 a year – the top 1% of earners. Even on this change – which would see the most well off bear more of the burden – the SNP have bottled it.

"Faced with the opportunity to use the new tax powers, rather than cut into Scotland’s future, the SNP have chosen to carry on with Tory cuts. Scottish Labour has a bold tax plan which would end austerity in Scotland and deliver investment in our public services."

The First Minister's tax plans were also criticised by the Scottish Greens as being "deeply disappointing".

Patrick Harvie MSP, the party's co-convener, said: "Following on from the SNP's deeply disappointing decision to let the unfair Council Tax live on in the next Parliament, today’s announcement that nobody, not even the very wealthiest, will pay a penny more in income tax is breathtaking.

"In the independence referendum, and in the Smith Commission, the Scottish Greens argued alongside Nicola Sturgeon and John Swinney that Scotland needed the power to build a fairer, more equal society and an economy that protects our vital public services and invests in our young people’s future. To finally win these powers and then not use them is extraordinary."

The SNP's tax proposals faced further criticism from the Scottish Trade Union Congress:

Meanwhile the Scottish Conservative leader Ruth Davidson accused Nicola Sturgeon of wanting "to make Scotland the highest taxed part of the United Kingdom."

The Scottish Government claim that their proposals would generate an additional £1bn of revenue by 2021/22.