Thousands of local workers will soon be getting more money in their pay packets after the UK Government confirmed it is to reverse a recent rise in National Insurance contributions.

The 1.25% increase was introduced in April under former Chancellor Rishi Sunak but will now be scrapped in November.

Announcing a mini-budget on Friday, current Chancellor Kwasi Kwarteng said this will mean an extra £330 per year for the average worker.

However, local employees will not benefit from the UK Government’s decision to cut the basic rate of income tax by 1% from April, as the Scottish Government sets its own rates for income tax.

Other key announcements in Mr Kwarteng’s mini-budget included tax cuts for high earners, although this too will not apply in Scotland, and the removal of a cap on bankers’ bonuses.

The UK Government say high tax rates damage competitiveness but some financial experts have warned that the new measures could fuel further rises in inflation.

Labour MSP Neil Bibby, who represents Renfrewshire and East Renfrewshire as part of his West Scotland remit, said the mini-budget will bring little cheer to local households.

He added: “Massive tax cuts for those earning over £150,000 a year, scrapping bankers’ bonuses and cutting corporation tax are the wrong priorities.

“This is casino economics that, if it pays off, will benefit the richest few in society. Families on modest and middle incomes in Renfrewshire and East Renfrewshire will be rightly furious.”

However, Scottish Secretary Alister Jack hailed the mini-budget as “ambitious.”

He said: “Our Plan for Growth will support households and businesses, while driving economic growth to deliver jobs, investment and prosperity.”