Revenues from income tax were almost £1bn less than forecast in the first full year of Scottish control over rates and thresholds.

In 2017-18, Scotland raised £10.9bn from devolved income tax - £941m less than forecast by the Scottish Fiscal Commission in 2016.

Under the fiscal framework agreed between the Scottish and UK governments in 2016, a risk-sharing mechanism called "reconciliation" is in place to offset such shortfalls.

The Scottish Government's block grant will receive an extra £737m next year from Whitehall as a result of the hit to tax receipts.

However, it will still mean a net reduction to the Scottish budget in 2020-21 of more than £200m.

Scotland's finance secretary Derek Mackay said income tax revenues grew by 1.8% in 2017-18 - and are provisionally expected to grow by another 7% next year.

In 2017, Mackay introduced two new bands into the Scottish system of income tax thresholds, diverging sharply from the UK's three-tier system.

He brought in a starter rate of 19% for the lowest-paid earners but kept the standard basic rate of 20p, and further introduced a new intermediate band of 21% for those on £24,000 to £43,430.

Last year, Mackay announced the higher rate threshold would be frozen at £43,430 at a rate of 41p, and kept the top rate, or additional rate, at 46p for taxpayers earning £150,000 or more.

He said the combined number of higher and top rate taxpayers in Scotland is growing faster than in the rest of the UK, despite paying more in income tax than they do in England, Wales and Northern Ireland.

HMRC also published figures on Thursday showing public spending per head in Scotland rose to £10,881 in 2017/18 from £10,606 the previous year, compared to the UK average of of £9,350 per head.

Chief secretary to the Treasury, Liz Truss, said: "The 2016 Scotland Act was a major new act of devolution that helps make the Scottish Parliament one of the most powerful devolved parliaments in the world.

"This helps to realise all the benefits of the union as it provides Scottish ministers with substantial powers over taxes and spending for Scotland while still being supported by the broad shoulders of the UK.

"But with those new powers, Scottish ministers should take responsibility and focus on the decisions necessary to get Scotland's economy growing faster to avoid shortfalls in tax receipts."

Mackay said: "These statistics show that the Scottish Government's choices on taxation are helping to create a more progressive tax system at the same time as our economy is growing with low unemployment.

"Between 2016-17 and 2017-18, Scottish income tax revenue increased by £197m, a growth of 1.8%, while the number of Scottish higher and additional rate taxpayers combined, and the revenue paid by them, grew more quickly in Scotland than in the rest of the UK.

"These figures demonstrate that concerns taxpayers would relocate as a result of our tax policy choices were unfounded."

He added: "The PAYE receipts data published today shows stronger growth for Scotland than the rest of the UK for 2018-19, which could have a positive impact on the size of next year's reconciliation."