First Minster Nicola Sturgeon has said it would be a "serious error" for Scotland to match all the tax cuts announced by UK Chancellor Kwasi Kwarteng.
Last week he set out plans to reduce the basic rate from 20p to 19p and scrap the 45p rate for high earners.
His proposals do not apply to Scotland, where income tax rates and bands are decided by the Scottish Government. However, £600million is being made available over three years for Holyrood to follow suit.
Yesterday, Ms Sturgeon told the BBC that it was the wrong time to make "a relatively small number" of rich people richer.
"It would be a serious error for the Scottish government to replicate in every sense that strategic economic mistake that the chancellor made, but we will take decisions that are right for Scotland," she said.
"We live in a situation right now where growing numbers can't afford to heat their homes, can't afford to feed their children, are going without basic essentials, and I don't think many people would think this is the right time to give massive tax cuts to a tiny number of already rich people."
The first minister said "trickle down economics" had been "roundly discredited" and the UK government's current approach would not work.
Given the reaction from markets, Ms Sturgeon predicted a potential increase in interest rates and the cost of borrowing, and a continuing issue with inflation.
"The UK government seems to have no idea what it is doing - the damage it is doing to the economy overall, and to the living standards of the majority, is deep and very, very serious," she said.