The SNP regime at Holyrood has ruled out calls for a rise in income tax after Labour backed the measure to save public services.
Kezia Dugdale, the Labour leader, unveiled radical plans for a 1p increase in income tax to fight austerity and reverse cuts in education as MSPs prepare to vote on the 2016-17 budget this afternoon.
Labour also pledged a £100 rebate for low-paid workers to ensure they don’t lose out.
But finance secretary John Swinney said: “I will not penalise those on low incomes, and I certainly won’t increase their tax bill.
“Instead this budget will see up to 51,400 lower-paid workers receive an increase in pay.”
The Lib Dems also back a 1p rise in income tax.