Scottish Labour announces 1p tax rise

Video report by ITV News Correspondent Peter Smith.

The Scottish Labour leader has announced a 1p income tax rise for earners in all bands - just three months before the Holyrood elections.

The move would make income tax in Scotland higher than the rest of the UK but leader Kezia Dugdale maintains it could be a necessary measure to ensure there is a continuing investment in public services.

But not everyone agrees with Dugdale and the proposal has already drawn criticism from the SNP.

Stewart Maxwell, an SNP MSP, said the worry was that the lowest earners would be hit hardest by the change.

He said: "This is a policy that will hurt working people, that will effect low earners, will effect middle earners very badly at a time of economic austerity."

What are the key figures behind the proposed tax rise?

• Scottish Labour say a 1p tax increase would generate around half a billion pounds to offset public spending cuts being made in Scotland under Westminister's policy of austerity

• The rise would mean on an average Scottish income of £23,000 workers would be taxed an extra £120 a year

• Scottish Labour said they would offer a £100 rebate for anyone earning less than £20,000 to stop low-income families being hit the hardest

Read more: Scottish Labour leader plans income tax hike for middle class