Nicola Sturgeon has pledged to investigate the public purse handing every Scot a “citizen’s income” and signalled she is considering using her new powers to increase middle-class taxes.

Unveiling her programme for government in the coming year, the First Minister told MSPs that the concept of the state making regular payments to all Scots “is an idea that merits deeper consideration.”

She admitted that a so-called citizens’ income scheme had several practical problems, including whether the Scottish Parliament has the power to introduce one, but said her government would work with interested local authorities to examine it.

Ruth Davidson, the Scottish Tory leader, treated the plan with derision and warned that Ms Sturgeon hinting at income tax increases would drag down Scotland’s economy.