Hundreds of thousands of Scottish workers will pay more income tax than their counterparts in the rest of the UK, the finance secretary has confirmed.

Derek Mackay announced the changes in his draft devolved Scottish Budget at Holyrood on Thursday.

Around 30% of all workers will be paying more under the plans, but no one who earns below £33,000 will pay more next year than they do now.

The Scottish Government say a majority of workers (55%) will actually pay marginally less than they would if they worked in the rest of the UK instead, due to changes made at the bottom of the tax rates.

The independent Scottish Fiscal Commission estimate the changes to the tax system will generate an additional £164m in revenues.

It is the first time Scotland has different income tax rates and bands from the rest of the UK.

Mackay told MSPs: "Having carefully considered contributions from the public, civic society and the business community, I have decided to reform Scotland's income tax system. Using the limited powers available to us, the decisions I have reached will make our income tax system fairer."

Despite assurances most Scots will be no worse off, the Conservatives were unimpressed.

Fraser accused the SNP of breaking a manifesto promise pledge to not to increase the basic rate of income tax for those on low or middle incomes.

He called on Mackay to apologise, adding "no one will believe a word they say ever again".

The Conservative front bencher claimed the real reason for the rises is that Scottish economic growth is lagging behind the UK.

Scottish Labour leader Richard Leonard said the devolved administration's tax and spending plans had only "tinkered round the edges" instead of implementing radically reforming the country.

Scottish Green co-convener Patrick Harvie said: "I'm delighted that that basic argument for a more progressive tax structure appears to have won the day and we're going to be seeing changes, not as soon as I would have wished them - we should have been here last year - and not as far as I would wish them either, but that basic argument for a more progressive income tax has won the day."

Scottish Liberal Democrat leader Willie Rennie said the devil would be in the detail of the tax announcement.

The Budget will now be scrutinised by Holyrood's finance committee as well as by other MSPs in the Chamber.

The plan will be laid down as a parliamentary bill in late January or early February, with the Scottish Government hoping it will be passed by the end of February.