THE number of people on the payroll in Scotland is at a record high, new figures show, despite Tory claims that the tax system north of the Border will drive employed people to move to England.

Estimates from HMRC have suggested there were 2.46 million payrolled employees in Scotland during December, a figure up by 0.9% year-on-year.

Meanwhile, unemployment figures have seen little change in the latest data, with the jobless rate at 3.8% between September and November 2023.

The figure is down from 3.9% in the previous quarter’s experimental data from the Office for National Statistics (ONS).

The employment rate was at 58.9% and the economic inactivity rate was at 38.8% between September and November. Both of these saw little change from the previous quarter.

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Conservative Scottish Secretary Alister Jack accepted the figures for payrolled employees were at "a new record high".

However, earlier on Tuesday, his Scots Tory colleague Liz Smith MSP had claimed that the difference in tax rates in Scotland and England is a “huge disincentive” for people to live and work north of the Border.

She went on: "After the latest tax hikes in Shona Robison’s disastrous budget, it would be no surprise if more people in the south of Scotland moved house to Berwick or Carlisle – to avoid being clobbered further.”

Commenting on the latest figures, Scottish Wellbeing Economy Secretary Neil Gray said: “These welcome latest figures, for December 2023, show the highest number of payrolled employees in Scotland since the series began.

“The latest ONS adjusted experimental estimates show that the employment, unemployment and economic inactivity rates for Scotland in September to November 2023 are relatively unchanged over the quarter.

“They reflect the Scottish Government’s commitment to using our limited powers to support more people into work through employability and skills support amid ongoing economic challenges.

“This includes expanding Scotland’s provision of high quality funded childcare to support more parents, and those with caring responsibilities, into work.

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“Our devolved employability support is tackling inequalities in Scotland’s labour market by creating a more responsive, joined up and aligned employability system that meets the needs of employers and local job markets, helping people of all ages progress towards, enter and sustain employment.

“However, with industries such as hospitality and agriculture still facing enormous recruitment challenges, the UK Government’s proposed changes to immigration policy will further prevent access to the international labour market that Scotland needs for our economy to prosper.

“With full powers over migration, Scotland could boost its workforce and tackle recruitment challenges.”

Commenting on the figures, Scottish Secretary Jack said: “Our reforms to get more people into employment are working – Scotland’s labour market is resilient and remains strong.

“In December 2023, the number of people on company payrolls in Scotland reached a new record high with an increase of 2000 to take the overall figure to 2.46 million.

“We’ve achieved the Prime Minister’s goal of halving inflation, and UK-wide annual growth in earnings rose by 6.6% in Great Britain from September to November 2023.

“That means money in people’s pockets on top of the National Insurance cut worth an average saving this year of £340 for 2.4mn workers in Scotland.

“We’ve also directly invested nearly £3 billion across Scotland through our ambitious levelling up agenda to create jobs and opportunities.”