THERE will be no real-terms increase to any income tax rates this year, Public Finance Minister Kate Forbes has said.

The MSP stood in for Derek Mackay – who resigned as Finance Secretary after it was revealed he sent hundreds of messages to a 16-year-old boy – to deliver the Scottish Budget.

READ MORE: No criminal complaints filed against Derek Mackay, Police Scotland say

In a statement at Holyrood, Forbes said that basic and intermediate band thresholds of income tax will be increased by inflation to protect the lowest and middle-income earners.

The higher and top rate tax threshold will be frozen, a move which will raise an extra £51 million in revenue in 2020/21.

Scottish income tax will provide more than £12 billion, partly driven by continued growth, Forbes said.

There will also be £1.8bn of investment in low-carbon projects and £120m for a heat transition deal.

Meanwhile, funding for peatland restoration is to be raised to £20m next year, up by £6m.

National infrastructure is to receive £1bn, with city deals to benefit from £201 in funding.

There will be £220m of investment in the Scottish National Investment Bank and a business rates relief of £744m.

In addition, public sector workers earning less than £80k are to benefit from a 3% pay rise.

Forbes also revealed more funding to help disadvantaged people access further and higher education.

There will be £1.4bn of investment to support low-income households before taking into account the remaining devolved benefits.

There will also be £645m for the "radical” extension of early learning and childcare.

More to follow