Nicola Sturgeon is “coming for your pay cheque”, Ruth Davidson has warned Scotland’s workers after the First Minister disclosed she was considering whether to increase the basic rate of income tax.

The First Minister said the 20 per cent basic rate – levied on income between £11,501 and £43,000 - would be included in cross-party discussions she intends to hold on making Scotland’s income tax system more “progressive”.

Despite Ms Sturgeon promising in her manifesto for last year’s Holyrood election that the basic rate would not be touched, she said the SNP had an "open mind" and argued that an increase should not be ruled out because she wants “the highest quality public services" and "well-paid public servants”.

But Ms Davidson warned that “jacking up taxes on working families” would damage the economy and highlighted a series of interventions from business leaders that the move would backfire by driving away investment to the extent it could herald another recession.

The Scottish Tory leader also highlighted how the SNP’s manifesto for June’s snap general election argued increasing the 45p additional rate, on income of more than £150,000, risked reducing tax revenue by encouraging the wealthy to move their money elsewhere.