Theresa May has savaged Nicola Sturgeon’s economic record after it emerged Scottish growth has almost flat-lined and is half the UK rate.

The Prime Minister highlighted new statistics showing the Scottish economy grew by only 0.2 per cent in the third quarter of 2017 compared to a 0.4 per cent increase recorded across the UK as a whole.

Scottish growth over the previous year was 0.6 per cent, barely a third of the 1.7 per cent increase across the UK. GDP per person, which shows economic growth after taking population changes into account, was flat at zero north of the Border.

Keith Brown, the SNP Economy Minister, blamed Brexit for Scotland’s dismal performance despite that being a factor across the UK.

But the Tories said Ms Sturgeon must re-think her plan to increase income tax for middle and high earners and claimed that the “growth gap” since the SNP came to power in 2007 is on course to cost the country £16.5 billion.

Business leaders said there should be a renewed focus on the economy in the Scottish Government’s 2018/19 Budget, currently being considered at Holyrood, with no additional tax increases imposed.

Their demand comes amid fears that the minority SNP administration will freeze the salary threshold for the 40p higher rate income tax band, rather than increasing it by inflation, in order to win the votes of the hard-Left Greens.