Jamie McIvor
BBC Scotland

The Scottish government plans to allocate £11.6bn to councils in the coming year.

This includes £259m of non-recurring funding to help them deal with the effects of the pandemic.

Earlier this week, a report from Audit Scotland highlighted how the crisis was adding to some council costs but also costing them income.

Councils will do their sums carefully once they hear just how much the government intends to give them individually.

The Scottish government gives councils a substantial proportion of their money but not all of it - they also get money from the council tax, of course, and business rates. Sources such as income from leisure centres and car parks complete the picture.

Some of the government money is tied to particular priorities: £59m for the expansion of early learning and childcare; £72.6 m to invest in health and social care; £7.7m to support certain ferry services provided by councils in the Northern Isles and Argyll and Bute.

But councils will also be working out just what they'll have in their kitties to spend at their own discretion.

Willie Rennie says the recovery from the pandemic must be put first.

The Scottish Lib Dem leader argues the £1.1bn for mental health will not be enough.

He calls for the finance secretary to look again at these priorities "in the discussions we have planned".

Ms Forbes jokes: "Well I'm delighted to hear that we've got discussions planned, that's fantastic and I look forward to engaging with the Liberal Democrats in securing support for this budget."

She pledges to be very open to any ideas put forward.

Jamie McIvor
BBC Scotland

Kate Forbes announced £90m of Scottish government funding if local authorities agree to freeze the council tax this year.

The council tax was frozen for several years after the SNP came to power in 2007. Initially the freeze was an interim measure while they hoped to replace what they called a “hated” form of taxation.

Initially the policy was popular. But gradually murmurings grew. Local government needed more financial freedom, some argued. The terms of the council tax freeze, it was claimed, ultimately worked against local democracy.

The freeze ended – and bills started to increase again though some councils didn’t go for the maximum increase possible. Changes to bands also led to increases for those in more expensive properties.

In practice, it’s almost certain councils will accept the package on offer to pay for another freeze. In the past, saying "no" would have left them without some government money and led to unpalatably large local rises.

The Scottish government will be hoping a freeze will be popular with the public – especially at a time when some people are facing financial pressures linked to the pandemic.

But the old arguments about whether local government, as a matter of principle, needs more power to raise revenue from a number of different sources could resurface in the longer term.

Boris Johnson says most people in Scotland are focused on defeating Covid rather than another referendum.

Interim Labour leader Jackie Baillie welcomes the renewed focus on the economy and the extension of business rates relief during Kate Forbes' budget statement.

But she also asks if the finance secretary can promise health and social care workers who have put themselves at risk during the pandemic, and are only earning £8-9 an hour, a pay rise to £15 an hour?

Kate Forbes says she thinks the UK government's freeze on public pay misjudged the public mood and failed to acknowledge the contributions made by public sector workers during the pandemic.

That is why she has proposed a 3% rise in public sector pay for those in the lowest income bracket, she says.

Douglas Fraser
Scotland business & economy editor

The possibility of a council tax freeze is being offered to local authorities, at a cost of £90m to the Scottish government.

It is very likely therefore that the councils will make use of that.

It would avoid a 3% increase in council tax.

There is more for councils but some of it is conditional on what is happening with money for the Covid crisis.

A lot of it is uncertain because of Westminster's tax and spending position not being clear until 3 March.

Image source, Reuters

Mr Fraser calls for business support to continue for 12 months.

The Scottish Conservative finance spokesman insists the Scottish government have the funds already to make that happen.

He says the SNP have under-funded local authorities for years.

Ms Forbes thanks Mr Fraser for his kind wishes at the start of his contribution.

The finance secretary moves away from consensus and accuses Boris Johnston of moving away from the spirit of the rules on essential travel rules to make the case for the union, "because he is running scared".

Mr Fraser says it is essential that the Scottish government "get that cash out the door" and adds that an additional £1.3bn more is coming next year for dealing with the pandemic.

That's in addition to a £1.1bn increase in the general budget, he points out.

"Even without additional Covid resources the budget for the coming year will be the highest in the history of devolution," he adds.

Mr Fraser says we need a budget that focuses 100% on managing the pandemic and our economic recovery thereafter.

The Scottish Conservative spokesman warns his party will reject any plans to spend money on campaigning for "another divisive independence referendum".

"We need a budget about building up, not breaking up," he says.

He insists the Scottish budget has seen unprecedented support from the UK treasury over the past year, with a guaranteed additional spend of £8.6bn in the current financial year.

Murdo Fraser begins with a moment of political consensus by congratulating Kate Forbes on "the recent happy news of her engagement".

The Scottish Conservative Finance spokesman jokes: "It's good to see her recognise the benefits of being in a Union."

Kate Forbes concludes her statement by saying the economic recovery "may be long and it will be hard" and she cannot guarantee there will not be "more tough times ahead".

But with large-scale Covid vaccination well under way, the finance secretary says "there is some light at the end of the tunnel".

"This budget seeks to build on that hope and seeks to make that light shine that little bit brighter," she adds.

To help Scotland achieve its net-zero target on carbon emissions, over the next five years an additional £150m will be allocated for woodland and forestry, Ms Forbes says.

This will support a 50% increase in tree planting and woodland creation, from 12,000 hectares this year to 18,000 hectares by the middle of the next decade.

Digital connectivity has also become "absolutely fundamental" during the Covid pandemic, says the finance secretary.

She will allocate almost £100m for improvements in digital connectivity, to ensure more people have access to 4G and 5G broadband coverage.

The next financial year will see the first phase of a five-year, £100m jobs fund and a commitment to establish a Green Jobs Workforce Academy, Ms Forbes says.

More than £230m will be invested to ensure diverse cultural heritage jobs are protected.

The Infracture Investment Plan, published next week, will outline a "pipeline of projects" designed to hep Scotland reach net-zero carbon emissions.

Annual investment in infrastructure will by £1.5bn by 2025, the finance secretary adds, supporting 45,00 full-time equivalent jobs across the period.

Ms Forbes says she knows that businesses will continue to need support for as long as they remain closed.

She confirms that the Strategic Business Framework Fund will continue to support businesses beyond the end of this financial year, should funding from the UK government continue.

Ms Forbes also confirms:

1. Doubling of the discretionary fund of £60m for local authorities
2. Commitment to pay February grants at level four, irrespective of which levels are confirmed over the next month