One in five under-40s will be dragged into paying higher or additional rate tax by the 2027/28 tax year as a result of frozen income tax thresholds, according to a new report.

Scotland has introduced a new tax band set at 45% of earnings between £75,000 and £125,140.

Today’s Scottish Budget saw middle and higher earners hit with an additional tax bill from next year.

Chancellor Jeremy Hunt will drag more taxpayers into the 45p additional tax rate by cutting the income tax threshold, he announced in his Annual Statement today.