Amid repeated SNP threats of a second independence referendum the Chancellor pledged the Budget cash to make the UK “stronger together”.
It takes overall investment north of the Border to £1 billion, sparking calls for the First Minister to scrap a middle-class tax grab.
Tories argued the Scottish Government now had more cash to reverse its decision to freeze the threshold for paying the higher 40p rate of tax at £43,000.
Philip Hammond handed Nicola Sturgeon an extra £350 million to boost Scotland's ailing economy
The Chancellor confirmed he is pressing ahead with plans to raise this to £45,000 from April meaning Scots will be £400 a year worse off than those on similar pay down south.
It is now up to Holyrood to use this money, along with their raft of newly-devolved powers, to make the right decisions to grow Scotland's economy
David Mundell – Scottish Secretary
But Mr Hammond faced fury for hiking national insurance contributions for more than 2.4million self-employed people – including 310,000 in Scotland – to raise around £650million a year for the Treasury.
The shock rise ripped up a Tory manifesto pledge not to raise the levy.
And around two million savers, many of them pensioners, will also be hit by a swingeing cut in the allowances on share dividends.
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Budget 2017: Philip Hammond hailed Britain’s booming Brexit economy today as he delivered his first Budget of the year
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Mr Hammond says he is 'building the foundations of a stronger, fairer, more global Britain'
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Some Tory MPs feared the move will trigger an angry backlash among many of the party's core supporters.
Unveiling the measures in his first Spring Budget, the Chancellor said his plans would prepare Britain for a "brighter future" outside the EU.
And pledging more funding for Scotland he said this “demonstrates once again that we are stronger together, in this great, United Kingdom.”
With Prime Minister Theresa May poised to trigger the EU’s Article 50 exit clause, Mr Hammond concluded: "We have done remarkable things together, but we look forwards, not backwards, confident that our greatest achievements lie ahead of us.
“We embark on this next chapter in our history confident in our strengths and clear in our determination to build a stronger, fairer Britain.”
The extra cash for the Scottish Government is made up of £260 million for the day-to-day budget and £90 million for spending on projects over the next four years.
It is on top of the £800 million of additional Barnett formula funds announced in last year's Autumn Statement.
But SNP ministers denounced the "limited increases" insisting their Budget was still facing cuts of £2.9 billion over the next decade.
The Prime Minister Theresa May is poised to trigger the EU’s Article 50 exit clause
Official figures published confirmed the UK economy has continued to accelerate following the EU referendum vote, with next year's growth forecast upgraded to 2 per cent.
However there have been repeated fears Scotland is lagging behind and Scottish Secretary David Mundell challenged the SNP to use the £1 billion to boost it.
He said: "It is now up to Holyrood to use this money, along with their raft of newly-devolved powers, to make the right decisions to grow Scotland's economy."
Scottish Finance Secretary Derek Mackay's tax and spending plans for 2017/18 have already been passed after her secured a deal with the Greens.
Across the rest of the UK, middle-class families will benefit from Mr Hammond's commitment that the threshold for the higher rate of tax will rise to £50,000, from the current £43,000, by 2020.
But Scottish Tory finance spokesman Murdo Fraser said there was no longer a need for Nationalists to make Scotland the highest taxed part of the UK.
He said: "The SNP’s double dose of local government cuts and income tax changes to penalise middle-earners is now utterly without justification.
“The question facing the SNP is this – if Philip Hammond can support public services while protecting family pay packets, why can’t Derek Mackay?”
The £350 million is on top of the £800 million of additional Barnett formula funds
But Mr Mackay said: "The real elephant in the room in this Budget was Brexit.
"There was no mention of the UK government's plans to protect and grow the UK economy as the prime minister gets ready to trigger Article 50.
"This is simply not acceptable. Brexit is a real threat to people across Scotland in so many ways. The Chancellor must tell us his plans."
Other measures announced by Mr Hammond included an extra £2billion for spending on social care and a major shake-up of schools south of the Border.
He also confirmed a panel of experts would be set up to examine how to boost sales of late life North Sea oil and gas fields – so they can keep producing for longer.
A discussion paper on how to help the industry will also be published, Mr Hammond told the Commons.
The Treasury said this would build on "unprecedented support already provided to the oil and gas sector through £2.3 billion packages in the last three years".
But Mr Hammond's decision to increase National Insurance risked a new Tory revolt.
Scottish Secretary David Mundell challenged the SNP to use the £1 billion to boost it’s economy
His plan to increase the Class 4 National Insurance contributions (NICs) paid by the self-employed from 9 per cent to 11 per cent over two years from April 2018 will raise just over £2 billion in four years from 2.485 million workers.
Tory former minister Andrew Murrison told the Commons it was "vitally important" to ensure the change did not disadvantage "White Van Man".
Many Tories were dismayed that the move smashed their 2015 manifesto promise: "A Conservative Government will not increase the rates of VAT, Income Tax or National Insurance in the next Parliament."
Around 2.2 million people – including 7 per cent of all the country's pensioners – are expected to lose an average £320 a year due to Mr Hammond's changes to dividend allowances.
Figures from the Office for Budget Responsibility, the Government's financial watchdog, showed strengthening growth and improving public finances.
A fall in the amount of expected Government borrowing over the next five years forecast gave the Treasury an extra £26 billion in reserve.
Responding to Mr Hammond in the Commons, Labour leader Jeremy Corbyn claimed the Budget showed the Government's ""utter complacency".
Scottish Labour leader Kezia Dudgale said: "The Chancellor could have brought an end to seven years of damaging Tory austerity but instead he doubled down by imposing cuts to public services and welfare."