LOW-PAID public sector workers in Scotland will be offered a 3 per cent pay rise next year, but this will still leave them thousands of pounds worse off than a decade ago.

Delivering his draft Budget at Holyrood today, Finance Secretary Derek Mackay also shelved the proposed “Amazon Tax” on out-of-town businesses. He also said there would be no increase for the top income tax threshold, in contrast to Philip Hammond’s announcement that the threshold for the 40p higher rate will go up to £50,000 in April.

Mr Mackay said he had “agreed” a 3 per cent increase for all state and local government employees earning £36,500 and below.