Scottish households will pay up to £780 less than the average household in England because of the council tax freeze and lower water costs, the SNP has said.

The analysis from the party - which comes at the start of the first working week of the new financial year - was dismissed as "desperate spin" by Scottish Labour. 

READ MORE: Scottish directors believe SNP, Greens worse on economy

One of the big changes in Scotland's fiscal landscape for this year is a new advanced income tax band, which will apply a 45% rate on annual income between £75,000 and £125,140.

An additional 1pence will be added to the top rate of tax meaning income over £125,140 will be taxed at 48%.

The starter and basic rate bands will increase in line with inflation and the Higher rate threshold will be maintained at £43,662.

That means any Scottish taxpayers earning less than £28,867 will pay less tax than taxpayers in the rest of the UK.

But the divergence for those earning more will be greater.

Those on between £75,000 and £125,140 will pay up to £5,232 more than elsewhere in the UK.

Around 49% of taxpayers in Scotland will pay more tax than workers south of the border.

However, the SNP said the council tax freeze means the average Band D council tax in Scotland will remain at £1,417 for 2024/25.

In England, households will see an average council tax increase of 5.1%, taking the bill for a Band D property to £2,171.

In Wales, an average 7.7% rise will see a Band D property pay, on average, £2,024.

The average annual water bill will cost £444 in Scotland, and £473 in England and Wales.

The SNP said this would mean “the average household in Scotland pays £783 less per year than the average household in Tory-run England, and £636 than their equivalent in Labour-run Wales.”

The party's Social Justice spokesperson, David Linden, said: “Through the council tax freeze and a publicly-owned water company, Scots pay up to £780 less than residents in England and Wales.

“This is on top of free university tuition, free prescriptions, free baby boxes, free dental check-ups and seven welfare payments that are unique to Scotland, including the Scottish Child Payment.

“These are Scotland’s values.

“However, whilst we remain under Westminster control Scotland can only go so far - and shockingly that will remain true under a Labour government, given Sir Keir Starmer has signed up to Tory tax and spending plans, u-turned on renegotiating Brexit and refused to give Scotland’s parliament any more powers.”

READ MORE: Hunt's 2p NI cut will 'somewhat offset' Robison's tax increase

Labour’s spokesperson on finance, Michael Marra said: “Behind the SNP’s desperate spin is the fact that they are raising taxes on nurses and plumbers to pay for their own failure to grow the economy.

“With the SNP hiking taxes on workers while opposing a windfall tax on oil and gas giants, it is clear that they are not on the side of working people.

“Only Scottish Labour will deliver the growth we need and put money into the pockets of working people.”

Scottish Conservative finance and local government secretary Liz Smith said Scots were “paying more and getting less” under the SNP.

She said: “In a desperate attempt to cover their backs from the mess they’ve made of the country’s finances, the SNP are set to hit hard-pressed Scots with even higher taxes.

“Whilst they continue to play the blame game and point the finger at Westminster, they are choosing to ignore the fact that the new financial year will see the tax gap widen even further between Scotland and the rest of the UK.

“Their claim that this increase in tax will improve public services is entirely misguided – their catastrophic mismanagement of Scotland’s finances has left our public services completely overwhelmed and at breaking point.”