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Ms Smith says the tax take and productivity are not high enough in Scotland.

The Scottish Tory finance spokeswoman warns we must also help those who are at the productive end of the economy as it is as important as looking after the vulnerable.

She says four Holyrood committees looked at the National Care Service proposal and it is difficult to find any stakeholder who backs the proposals.

Ms Smith calls for the cash to be reallocated to the frontline of local government.

Philip Sim
BBC Scotland political correspondent

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It’s far from his first, but could this be John Swinney’s final budget?

The deputy first minister is standing in as finance secretary while Kate Forbes is on maternity leave, but she has very much returned to the front lines as a leadership contender.

In theory he will soon be going back to his day job as Covid recovery secretary.

And his decision not to run for the SNP leadership - saying a “fresh perspective” was needed - perhaps raises a question about whether he will remain at Holyrood in the longer term.

There is no question that Mr Swinney thoroughly enjoys these moments in the parliamentary chamber, engaging in some fiery exchanges with opposition MSPs and gleefully heckling them from the front bench.

But as the SNP moves towards a new generation, there may be a question over whether he will have many more of them.

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Scottish Conservative MSP Liz Smith says her party supported the Child Payment and adds a budget is about much more than one measure.

She adds, according to the Institute of Fiscal Studies, the SNP are reliant on funding free prescriptions and no tuition fees by taxing middle and higher earners much more.

Ms Smith says young professionals will pay more in Land and Buildings Transaction Tax (LBTT) than in stamp duty down south.

She adds they will pay nearly £1,000 in income tax and council tax.

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The deputy first minister says the budget is "anchored" in three main themes: combatting child poverty, supporting the transition to net zero, and providing sustainable public services.

Mr Swinney confirms the government will be increasing the top and higher levels of taxation by 1p each.

But he argues the majority of people in Scotland will pay less in taxation than the rest of the UK.

He says more than £19bn will go towards the health and social care portfolio and £2bn towards primary care in the community.

And the government will freeze the non-domestic rate poundage for businesses.

Mr Swinney says £5.2bn from the budget will go to social security payments, including £442m invested in Scottish child payments which give families £25 per week per child.

However he acknowledges the difficulties in the budget, saying: "These are difficult decisions in difficult economic times."

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The deputy first minister says he will provide an uplift of £6.6m for Creative Scotland for 23/24.

Mr Swinney says our country requires the inspiration the arts and culture sector provides.

Mr Swinney says: "I hope there's no mucking about today in not voting in favour of the budget I am putting in front of parliament."

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The total additional funding for councils next year is £793m.

The total funding now being made available to support local services is nearly £13.5bn, plus the revenues from council tax.

This is a 3% real terms increase, Mr Swinney says.

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The deputy first minister says last week the government confirmed it would provide an additional £156m to support a new pay offer for teachers.

£33m is for this financial year and a further £123m for next year, he explains.

Mr Swinney explains he can now make clear some additional spending plans for 2023/24.

The deputy first minister says there will be an additional £100m to support councils and their expenditure.

This cash is to ensure a suitable pay offer is given to non-teaching staff.

The deputy first minister tells the chamber: "This is by far the hardest budget process that I have led."

John Swinney says Barnett funding is down by 5% since 2021/22.

He says he is now confident of the path to balance the budget for this financial year.

Mr Swinney adds there is an additional £125m in Barnett consequentials and there will be an additional £21m for 2023/24.

John Swinney gets to his feet and the final Budget Bill debate is under way.

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John Swinney will shortly urge MSPs to vote for the Budget, saying it will help people most impacted by the cost of living crisis.

The deputy first minister has said his 2023/24 proposals would also create jobs and help Scotland reach its climate targets.

They include an income tax rise for everyone earning more than £43,662.

Opposition parties have criticised the plans, but Swinney - who is standing in for finance secretary Kate Forbes - said he hoped they would acknowledge the challenging economic conditions.

• Read more here
• Higher earners in Scotland to pay more income tax
• Scottish income tax 2023-24 - What might you be paying?
• SNP budget may go down in left-leaning history

Is this budget more progressive?published at 14:14 Greenwich Mean Time 21 February 2023

14:14 GMT 21 February 2023

Douglas Fraser
Scotland business & economy editor

Among the unknowns, though, is how much will have to be found in next year's budget to settle pay claims by public sector workers. As things stand, there is no pay policy.

Holyrood budgets for the past six years have not only been about spending but about big decisions on income tax. The Scottish government reckons that taxpayers earning earning above £27,850 are willing to pay more than they would elsewhere in the UK. Someone earning £150,000 will be paying £3857 more income tax than a person earning the same in England.

As a result of this year's budget, earnings starting at nearly £45,000 will see a bigger tax bill than 2022-23.

The Institute for Fiscal Studies recently gave the Scottish government political cover on that, with analysis that shows how much these new tax and benefit powers are allied to re-distribution from higher earners to Scotland's poorer families.

The Scottish government likes to be seen as progressive that way. It cites a YouGov survey last October suggesting that two-thirds of people think government should use tax to redistribute to the less well off. Just over half, however, agreed with the proposition that higher tax should be levied to improve health, education and benefits.

Some 47% of people in the survey said they would personally be willing to pay more tax for public services, and the same proportion think their tax bill was not too high or low, but... just about right.

James Cook
Scotland Editor, BBC News

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Nothing lasts forever. That is true in politics as it is in life.

As they wash ashore, some political tides reshape the landscape before, eventually, they recede again.

Are we at such a moment? Is this the turning of the tide for the Scottish National Party and its campaign to end the 316-year old union between Scotland and England?

The answer to that question may lie with one of three people: Humza Yousaf, Kate Forbes or Ash Regan, all of whom are vying to take over from Nicola Sturgeon as SNP leader and Scotland's First Minister.

Read more here.

A bleak midwinter or an early spring?published at 14:01 Greenwich Mean Time 21 February 2023

14:01 GMT 21 February 2023

Douglas Fraser
Scotland business & economy editor

The Holyrood budget set out in draft on December 15 was a cold blast of bleak midwinter. At the same time, we were told that the economy was heading into an unusually long downturn.

The final stage of the legislative process in February comes with some hopes that the economic downturn will not be as harsh as previously forecast. And if you think next year's budget looks very difficult, they look a lot worse for the years that follow.

Health and social care get a lot more, rising to £19bn, though whether the proposed National Care Service will get all that it has been allocated may be down to the next First Minister. The legislation for that is bringing political problems, to say the least.

To accommodate a sizeable boost to those priorities as well as a rise in spending on welfare benefits - notably taking the Scottish Child Payment to £25 per week - means a squeeze on other spending.

Local authorities tend to complain most loudly, and with quite good reason. They have started setting council tax, at 5% more from April, while making deep cuts to services and grants to local organisations.

Everyone earning more than £43,662 in Scotland will have to pay more income tax next year.

The higher rate of tax will increase from 41p to 42p in the pound in April, and the top rate from 46p to 47p.

The tax threshold for the top rate will also be lowered from £150,000 to £125,140.

• Click here to find out more

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Meanwhile in the SNP leadership race contender Kate Forbes has denied her campaign has been derailed by comments on gay marriage.

Key backers have announced they can no longer support the finance secretary, who said she would have voted against legislation on same-sex unions.

She is one of three confirmed candidates in the contest, alongside Humza Yousaf and Ash Regan.

Ms Forbes said she would not seek to overturn gay marriage laws if she succeeded Nicola Sturgeon.

• Kate Forbes would not have backed gender bill
• Will faith turn the tide for Scottish independence?

• 2.05pm: Topical questions
• 2.20pm: Scottish Budget Stage 3 debate
• 5pm: Decision time - MSPs are expected to pass the Scottish government's Budget Bill

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The Scottish government will shortly urge MSPs to vote for its Budget, having debated it for the final time.

It says it will help people most impacted by the cost of living crisis.

Deputy First Minister John Swinney said his 2023/24 proposals would also create jobs and help Scotland reach its climate targets.

They include an income tax rise for everyone earning more than £43,662.

Mr Swinney called on MSPs to back the decision to channel "limited resources" where they are needed most.

Opposition parties have criticised the plans, but the deputy first minister - who is standing in for finance secretary Kate Forbes - said he hoped they would acknowledge the challenging economic conditions.

• Read more here
• Higher earners in Scotland to pay more income tax
• Scottish income tax 2023-24 - What might you be paying?
• SNP budget may go down in left-leaning history

Image source, PA Media

Good afternoon and welcome to our live coverage of the Scottish Budget, as MSPs debate it for the final time.

To watch the debate just click on the play icon at the top of this page.

We'll bring you reports, analysis and reaction throughout the afternoon.

There is also, of course, the SNP leadership race which is under way and we'll bring you developments from it as well.