Mr Swinney says initiatives such as free prescriptions and regular eye checks; free concessionary travel to older, disabled and young people, and ensuring free school meals continue for children in P1-P3 will continue. 

He says the Scottish government will require all employers to pay the Scottish Living Wage, raising to £22,000 the low pay threshold beneath which employees receive a minimum pay increase of more than 1 per cent and maintaining the No Compulsory Redundancy policy.

The minister moves to the welfare reform agenda of the UK Government, which he says is presenting real difficulties for hard-pressed families in Scotland and impacting on some of the most vulnerable in communities.

In contrast, he says, the Scottish Government will continue to do whatever it can to protect family incomes.

Mr Swinney says that the Scottish government will maintain its commitment to support people in Scotland affected by the UK government’s welfare cuts through measures including the allocation of £38 million to the Scottish Welfare Fund, up to £343 million for the Council Tax Reduction Scheme and £35 million to ensure nobody pays the ‘bedroom tax’.  

Scotland's first minister welcomed a U-turn by the chancellor on tax credit cuts. 

George Osborne announced in his Autumn Statement that he was scrapping plans to save £4.4bn by cutting tax credits. 

Nicola Sturgeon tweeted her congratulations to "all of those who kept the pressure on the Chancellor" over the issue. 

Mr Osborne also announced "significant increases" in money for major capital projects in Scotland. 

Image source, Reuters

The chancellor said the Scottish government's block grant would reach almost £30bn by 2019-20. 

And he said the spending review included an increase in capital funding for the Scottish government of £1.9bn through the block grant. 

He said this was an increase of 14% in real terms over five years, in addition to the Scottish government's ability to borrow up to £2.2bn for capital investment.

Revenue budget But the Scottish government said its revenue budget - which covers day to day spending - would be cut by 5.7% in real terms over the next four years. 

The minister says the SNP are committed to real terms increases in the health budget not just in 2016-17, but for the duration of the next Parliament should the party be re-elected in May.

The deputy first minister says in addition to the fundamental realignment of social care, this new investment will support two further reforms that will shape our NHS and equip it for the future.

"We intend to transform primary care with an extra £45 million next year to fund improvements and develop new models of care, with multidisciplinary teams working together to meet the needs of their communities."

Image source, Getty Images

Mr Swinney says the government will build additional elective capacity to meet the needs of a growing older population.

He says it will invest £200 million over the next five years in six new treatment centres. 

Mr Swinney announces that he will allocate more than £500m to NHS Budgets – resulting in total planned spending of nearly £13 billion next year.

That is an increase of 6.5 per cent on comparable figures for 2015-16, he says.  

Mr Swinney says: "The Government intends to allocate £250 million of new funding support from the health service into social care in 2016/17. "

This, he says, will enact the most significant reform in health and care since the creation of the NHS in Scotland in 1948.

Mr Swinney says he is pleased to confirm that the government will provide real terms protection to the frontline policing resource budget, next year, and if the SNP are re-elected in May, for every year of the next Parliament – a boost of £100 million over the period.

Image source, Police Scotland

The finance secretary says he is committing a further £55 million next year to community safety.

Mr Swinney says this Budget underscores the governnment's commitment to continue on this journey of reform of public services.

The finance secretary has confirmed there will be no change to income tax following new powers being devolved to Scotland. 

John Swinney is setting out his budget in the Scottish Parliament for the next financial year, criticising the UK government for its programme of austerity. 

As was widely expected, he announced the freeze -- telling MSPs any change would have a disproportionate impact on the poorest Scots.

The minister announces the Scottish government will provide £4 million to the local authority areas affected most by recent flooding in Hawick, Newcastleton, Dumfries, Alyth and other localities to help with recovery and to help households and businesses access the support they need. 

Mr Swinney announces new projects are now also able to proceed. 

He authorises the commencement of works in 2016-17 on the commencement of works of the Dalry by-pass in Ayrshire. 

The finance secretary also announces, in relation to the Aberdeen Western Peripheral Route, work will begin in 2016-17 on the improvements to the Haudagain roundabout.