Swinney moves on to the ongoing public health emergencies and reducing the avoidable harms associated with drugs and alcohol.

The government will:

• invest £160m to ensure this work continues
• this is part of its commitment to provide £250m additional funding over the life of this parliament to address the drugs death emergency
• Scottish government to pass on all of the consequential funding for the NHS in Scotland of £291m, but he stresses "it is not nearly enough"

The deputy first minister says that as a result of the choices he has made on income tax, he can increase the amount spent on health and social care in Scotland by over £1bn in one year.

Image source, Getty Images

The deputy first minister turns to the NHS and insists his government have offered a formidable pay settlement to staff working in it.

He announces the government will:

• invest over £13bn in health boards to allow them to continue to drive forward the five‑year Recovery Plan
• the reform of key services will continue, backed by £2bn to establish and improve primary health care services in the community
• provide £1.7bn for social care and integration to improve services while paving the way for the introduction of the National Care Service
• An additional £100m will be made available to support delivery of the £10.90 real living wage for adult social care, building on the increase provided in 2022‑23

Swinney has outlined the following spending plans:

• increasing the resources available to the college and university sectors by £26m and £20m to support this process
• he intends to increase the resources available to the Crown Office and Procurator Fiscal Service by £13m and to the wider justice system by £165m
• This will provide resources to tackle court backlogs, strengthen legal aid provision and enable the funding for police services to increase by £80m

As part of the government’s commitment to reaching net zero and decarbonising transport, Swinney says £60m will be invested into Scotland’s charging infrastructure for electric vehicles.

There will be £1.4bn to maintain, operate and decarbonise rail infrastructure, with nearly £200m invested in active and sustainable travel, with peak time rail fares removed for a six-month pilot.

The budget also includes £440m to support lifeline ferry services to island communities.

Swinney is also allocating £15m in this financial year and £57m in the next to support the long-overdue completion of the two ferries - vessels 801 and 802 - at Ferguson Marine shipyard.

Resources to build the two new Islay class vessels under construction, and a further two vessels of the same type currently in procurement, will also be provided.

The finance secretary has set out the key changes to income tax. Here are the main points:

• Personal allowance Under £12,570* - pays no tax
• Starter rate £12,571 to £14,732 at 19%
• Scottish basic rate £14,733 to £25,688 at 20%
• Intermediate rate £25,689 to £43,622 at 21%
• Higher rate £43,633 to £125,139 at 42%
• Top rate Over £125,140 at 47%

* Set by UK government. Reduced by £1 for every £2 earned between £100,00 to £125,140

The deputy first minister has highlighted the four important factors relevant in considering their budget decisions.

1. The enormous pressures on the public finances mean in some cases, it will take the Government longer to deliver on its plans.
2. The requirements for public sector reform will be “ever more required”, with emphasis on early intervention and prevention to create “person-centred public services”.
3. Rising input prices and energy costs mean the government will be unable to deliver as much from their capital budget as would have been judged possible a few months ago.
4. Given the uncertain inflation outlook and need to conclude some pay deals for the current year, Swinney will not be publishing a Public Sector Pay Policy for 2023-24 at this stage.

"We choose to prioritise the transition to net zero because it is precisely through this transition that Scotland will realise its economic potential, not in spite of it," continues Swinney.

"A stronger, fairer, greener economy benefits everyone."

John Swinney says he has chosen not to follow the path of austerity that is the hallmark of the United Kingdom government.

He pledges to commit substantial resources to protect the most vulnerable people of Scotland from the impact of decisions and policies made by the UK government.

"We choose to do everything in our power to eliminate child poverty because in doing so we improve the lives of children and families in Scotland today while also laying the foundations for a more equal and prosperous country in the future."

The deputy FM says the economy has been made weaker by the “calamitous choices made by successive UK governments”.

Although the chancellor’s Autumn Statement brought some improvements, Mr Swinney says the Scottish government’s budget will be lower in real terms than in 2021 and the outlook for future years is “looking particularly bleak in 2025-26 and 2026-27”.

Swinney says budget decisions have been made in the context of a predicted deterioration in the economy and projections made by the Scottish Fiscal Commission.

He points out that the Office of Budget Responsibility estimates the UK has entered a recession that will last for over a year and see GDP fall by 2%, while inflation now stands at 10.7% and interest rates have today risen to 3.5%.

With real household disposable incomes falling back to 2013 levels and shortages in the labour market, unemployment is projected to gradually rise to a peak of 4.7% at the end of 2024.

Taken together, in 2022-23, the Scottish government has allocated almost £3bn to help mitigate the cost of living crisis in these difficult days, says Swinney.

He warns the chamber there are two points he must stress:

"Firstly, despite reductions in spending of £1.2bn, the financial pressures are so great that I am still working in this financial year to find a path to fully balance this year’s budget.

"Secondly, as a consequence of that issue, for the first time since this government took power, I am announcing a budget today for the next financial year assuming that we do not carry forward any fiscal resources from this year into next."

The absence of that money being carried over increases the financial challenge faced, says Swinney.

The finance secretary pledges to increase benefits under the control of the Scottish parliament by the rate of inflation in September - that is 10.1%

Deputy First Minister John Swinney confirms that income tax rates are to rise for anyone earning more than £43,662 a year.

Higher rate taxpayers will pay 42p in the pound instead of the current 41p.

The top rate of tax will start at £125,140 and will rise from 46p to 47p in the pound

"These are spectacularly difficult times in which to manage the public finances," Swinney says.

The deputy first minister goes on: "I am wrestling with those challenges right now."

He refers to the fact that in the autumn the Scottish government had to make unprecedented reductions to its spending plans midway through the current financial year totalling £1.2 billion.

Swinney tells the chamber the government operates a fixed total budget unless the UK government allocates any additional resources to Scotland.

"Despite repeated requests, no additional resources have been forthcoming for this year."

Image source, Getty Images

John Swinney sets out "the troubled context" in which the budget is being delivered in.

The deputy first minister says: "The Scottish Government Budget for 2023-24 takes place in the most turbulent economic and financial context most people can remember."

Deputy first minister John Swinney finally begins his budget statement saying "that at no stage has anybody been authorised to disclose any information that is contained within the budget statement, on my behalf at any time.

He says a large number of people are involved in the preparation of a budget statement.

"I give you my categorical assurance as a member of this parliament since its foundation in 1999 that no individual was authorised on my behalf to disclose any information."

Before Ms Johnstone can continue, Murdo Fraser of the Scottish Conservatives raises a point of order, highlighting that more information about the budget statement has been published by the BBC (see posts at 3:00 and 3.02pm below)

Mr Fraser says it is "clear there has been a comprehensive briefing”, the situation is "now beyond a joke" and the Scottish government is "disrespecting parliament".

The presiding officer says she will allow the budget statement to be made.