The Scottish budget statement will come almost a month after Chancellor Jeremy Hunt unveiled the contents of his much-revised Autumn Statement in the House of Commons.

Mr Hunt announced a £55bn "plan for stability", half of which would come from tax rises and the rest from deep spending cuts.

At the time, he said his plans were worth £1.5bn to Scotland.

However, First Minister Nicola Sturgeon said Scotland essentially had a flat budget because its value had shrunk by £1.7bn as a result of inflation.

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Tax is the key to this budgetpublished at 10:12 Greenwich Mean Time 15 December 2022

10:12 GMT 15 December 2022

Glenn Campbell
BBC Scotland Political Editor

When rising prices, higher than expected pay deals and Ukrainian refugee support ate into the Scottish budget this year, ministers made cuts elsewhere to balance the books.

The difference now, as they look ahead to another tough year for the public finances, is that they can choose to use devolved tax powers to increase the cash they have to spend.

There is a clamour for them to do so from the trade union movement and others, while the Conservatives and key business voices are cautioning against putting up tax.

Ministers know they'll be criticised whatever they decide but from my conversations at Holyrood, I think the considered view is that the political and financial pain would be greater if they did not act.

While the SNP has a manifesto commitment to avoid increasing income tax rates during this parliament, they left themselves a bit of wriggle room in the small print.

In any event, they can still increase the tax paid by higher earners by freezing or lowering the thresholds at which the higher and top rates of tax take effect.

Image source, PA Media

The Scottish government is expected to target the country's higher earners when it unveils its tax and spending plans for next year.

Finance Secretary John Swinney said his budget would include "decisive action" to tackle the cost of living crisis.

This is likely to include cutting the threshold at which people start paying the top 46p rate of income tax from its current level of £150,000.

There has been speculation that middle earners may also need to pay more.

Income tax rates in Scotland, as well as several other taxes, are set by the Scottish government rather than by UK Chancellor Jeremy Hunt.

BBC Scotland political editor Glenn Campbell said the government knows it will be criticised whatever it decides to do on taxation, with the SNP's manifesto at the last Holyrood election promising not to raise income tax rates or bands during this parliamentary term.

• Read more here
• What might the Scottish budget mean for you?
• Which taxes can the Scottish government change?
• What to look out for in the Scottish Budget

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Good morning and welcome to our live coverage of the Scottish budget and first minister's questions.

Join us for all the build up, breaking news and reaction from the chamber on what is the busiest day of the parliamentary year.

The Scottish government is expected to target the country's higher earners when it unveils its tax and spending plans for next year.

John Swinney - who is standing in as finance secretary while Kate Forbes is on maternity leave - has said his budget will include "decisive action" to tackle the cost of living crisis/ He will begin his statement this afternoon at 14:25.

FMQs is at the usual time of 12 noon and we'll bring you extensive coverage of both.