Thousands of jobs are set to be axed across the public sector in Scotland in the wake of the massive cuts to frontline services including to housing and public transport in the budget plans announced today in Holyrood.

Deputy First Minister Shona Robison set out the government's tax and spending proposals for the year ahead having previously warned it would be one of the “most challenging” budgets since devolution amid high inflation and an estimated £1.5 billion deficit.

In her first budget, Ms Robison, who is also finance secretary, announced a new income tax band  for those on salaries of £75,000 a year and above.

READ MORE: Scottish Budget: £200m cut to housing condemned amid homeless crisis

The proposed advance tax rate of 45p will be applied on earnings from this level to £125,140, she said.  

But with the move not enough to raise additional revenue to fill the financial gap, the finance secretary also had to propose cuts to services.

And by giving an increase of more than £550 million to NHS frontline boards - a 4.3% rise, the axe would have to fall in other areas.  

READ MORE: Scottish Budget: Shona Robison and the 'tax and axe' budget

Housing, transport, social justice and child poverty all saw their budgets cut, while funding for mental health services was frozen.

The document also revealed a £107m cut to the education body, the Scottish Funding Council, and a £30m cut to Scottish Forestry. It also included a £5m cut to tourism.

"We are looking at deep, real terms cuts to public services across Scotland," Ms Robison said.

She was pressed by Labour's finance spokesman Michael Marra who asked how many workers would be made redundant as a result of the Budget.

Mr Marra noted various U turns in Scottish Government policy including over the council tax and on public sector job losses.

"It is chaos," he said.

READ MORE: Humza Yousaf facing battle with councils after 'low' tax freeze offer

"There's no other word for it. They were raising council tax by 22% and suddenly, unbeknownst the civil service or even to the cabinet, they were freezing it. 

"They had a plan to cut 1000s of jobs 1000s of jobs in the public sector, then the Deputy First Minister...said the plan was cancelled. Now the plan for 1000s of job cuts is back with a vengeance."

Ms Robison declined to give a figure on job cuts across the sector, underlining the government was committed to no compulsory redundancies and would be working with trade unions to ensure public services were sustainable.

Official documents published shortly after the finance secretary's speech revealed spending cuts across a wide range of areas.

These included a reduction in funding for housing by more than £200 million, rail services by £80m, active travel by £41m, ferries by £5.5m and bus travel by £4m.

The plans also included cuts to spending on tackling child poverty and social justice spending of almost £3m.

Cuts of £9.3m were made to the energy efficiency and decarbonisation budget.

Psychiatrists have reacted with "utter disbelief" to the announcement that mental health funding was frozen in cash terms in the Scottish Budget.

The Royal College of Psychiatrists said the £290.2 million settlement for 2024/25 - an identical figure to the previous two years - means there has been a 16% reduction in real-terms spending when in-year cuts are also considered.

Meanwhile, Keir Greenaway, GMB Scotland senior organiser in public services, warned the Scottish budget threatens lifeline services.

He said: “Our members have worked tirelessly to deliver services to our communities despite the damage done by years of underfunding.

“They deserve far better than to be warned of yet more uncertainty, jobs cut and services slashed.

“Our NHS and councils need more investment not less and this budget is not about money but choices and priorities.

“It is this government’s choice, for example, to freeze council tax which most benefits the better-off while undermining services relied on by the lowest paid and most vulnerable. 

“We do not need more tax policies provoked by crisis in the short-term if they cannot deliver sustainable public service investment in the long-term.

“Our national and local tax structures must work together to secure genuinely progressive tax policies that can protect these crucial services for years to come.”

Anti poverty campaigners - who had been calling for a rise to the Scottish Child Payment - were among the groups angered by the plans.

Director of the Child Poverty Action Group (CPAG) in Scotland, John Dickie, said: “The First Minister said during his leadership campaign that he wanted to see the Scottish child payment rise to £30 per week in his first budget. 

"It is bitterly disappointing for struggling families that he has failed to deliver. We know he had to make difficult choices but having chosen to fund a council tax freeze that financially benefits better off households it is hard to understand why his government couldn’t choose to boost the incomes of our hardest up families.”

By law the Scottish child payment must increase with inflation, and the Finance Secretary today confirmed it would rise from £25 to £26.70 per week in line with September’s CPI inflation rate. 

Ms Robison said: "This Budget is set in turbulent circumstances. At the global level the impacts of inflation, the war in Ukraine, and the after-effects of the pandemic continue to create instability. In the UK the combined effects of Brexit and disastrous Westminster policies mean that we are uniquely vulnerable to these international shocks.

“We cannot mitigate every cut made by the UK Government. But through the choices we have made, we have been true to our values and rigorous in prioritising our investment where it will have the most impact.

“We choose investment in our people and public services. This is a Budget that reflects our shared values as a nation and speaks to the kind of Scotland that we want to be.”