Labour MSP Jenny Marra says the cut to local government is 5.5%, "austerity plus".

Nicola Sturgeon has defended the funding deal for Scottish councils - and called on them to implement the Living Wage for care workers.

The first minister urged councils to accept the funding package on offer and work together in tackling low pay.

Image source, bbc

Many councils have argued that the deal and council tax freeze will force them into making "draconian cuts".

Ms Sturgeon made her plea as she addressed the SNP's first disabled members conference in Glasgow.

Scotland's councils have until 9 February to respond to the Scottish government's funding package.

On Friday, Cosla, the umbrella body for the most of the 32 councils, urged its members to reject it.

Labour MSP Ken Macintosh says John Swinney's budget is a "Conservative budget with a capital C".

Image source, bbc

Mr Macintosh highlights the £500m cut to local government and says his party proposes a rise in income tax of 1p to protect services.   

• Cut local government revenues by 3.5% for 2016/17
• No change to income tax 
• A continued council tax freeze
• A new 3% Land and Buildings Transaction Tax levy on the purchase of many second homes from April 2016 
• £200m to be invested over the next five years in six new NHS treatment centres 

• A commitment to increase free childcare for three and four-year-olds to 1,140 hours per year in the next parliament 
• An additional £55m for Police Scotland, which follows criticism of the effect of merging the eight regional forces into a single national force 
• An extra £45m next year to fund improvements and develop new models of primary health care 
• An increase of £90m in the budget for affordable housing for next year
• A review of the business rates system to be launched

Mr Harvie says, however, he disagrees with the increase in income tax proposed by Labour and the Lib Dems.

The Green MSP says his party would end the council tax freeze and use other mechanisms to increase revenue.

Image source, bbc

He says to avoid a crisis in public services action must be taken, but he proposes to do that at local level, as well as ensuring the balance between wealth and income tax.

Labour's amendment calls for a move too far towards income tax, he says.

He criticises the "savaging of the climate change budget", amongst others and calls on the finance secretary to think again.

Scottish Green Party co-convener Patrick Harvie says the government is due some credit on its position on ensuring the living wage is given to care workers.

Mr Harvie says these workers are due the living wage

Dr Richard Simpson intervenes saying voluntary organisations will have to shoulder 25% of the costs.

Mr Harvie agrees.

The Green MSP gives credit to both the Lib Dems and Labour for accepting revenue must be raised to protect public services. 

SNP MSP Chic Brodie says Willie Rennie "obviously doesn't understand the economic cycle or he'd get on it".

Mr Brodie says we're here because Scotland's capital budget has been cut and that Scotland is "hitched" to a Tory austerity programme.

The SNP MSP says Labour's ideas on increasing income tax are "regressive".

Labour are suggesting this knowing the will not be in a position to implement it, he says.

Mr Brodie says it is going to be tough but "When the going gets tough, the tough get going". 

Brian Taylor
BBC Scotland Political Editor

It was, said John Swinney, a budget statement which covered but a single year; 2016/17. 

The tardiness of the Chancellor's announcements, themselves dictated by the UK election timetable, pre-empted any prospect of a full forward review of Scottish spending plans. 

Image source, Andrew Cowan / Scottish Parliament

However, there were some future indications. In particular, did we get a glimpse of Mr Swinney's thoughts on transforming local authority taxation?

I think we did. Mr Swinney said he would study the report from the Commission on Local Taxation and, in the New Year, "set out plans to reform the council tax". Reform, note, not replace.

Further, he said he would talk to councils about trying to find ways of assigning a proportion of income tax receipts to local authorities as "an incentive to boost economic growth in their areas".

Mr Rennie says the Lid Dems have proposed increasing income tax rates by 1p to raise £475m.

The Scottish Lib Dem leader says higher tax thresholds will help those on the lower wages.

This is a progressive measure he insists.

It would mean investment in education and other public services concludes Mr Rennie.

The Scottish Liberal Democrats have proposed increasing income tax rates by 1p to raise extra funds for schools.

The party said the change to rates would raise £475m a year, which it would put towards Scottish education.

It would be spent on a "pupil premium" to fund children from more deprived backgrounds, early learning, childcare and college provision, and giving money to councils for schools.

Holyrood's other parties have also pledged to focus on education.

Lib Dem leader Willie Rennie said his party had "an ambitious plan", adding: "Scottish education was once the envy of the world. It has fallen hard and fast."

Scottish Liberal Democrat leader Willie Rennie says John Swinney has strong armed local government into submission with a triple whammy of fines totalling £408m.

Mr Rennie says the triple lock on councils denies any choice and the finance secretary's refusal to use the powers he has means these are Johns Swinney's cuts.

The £500m cut to schools and council services, John Swinney's cuts he says.

Conservative MSP Murdo Fraser says the intention of his party is to abstain on the Budget Bill this evening.

Mr Fraser says his party will defend hard pressed households and will oppose tax rises.

Scotland should create a new middle income tax band after greater powers are devolved to Holyrood next year, a commission set up by the Scottish Conservatives has suggested.

The commission said the move would prevent many "aspirational families" being drawn into the higher tax rate.

It suggested the new rate should be between the current 20% and 40% bands.

Its report also said taxes in Scotland should be lower than the rest of the UK "when affordable".

And it called for the council tax to be reformed to make it fairer.

Scottish Conservative MSP Murdo Fraser says the total budget for 2016-17 will be higher in real terms than some preceding fiscal years and in cash terms will be more than £400m higher than last year.

Mr Fraser says Mr Swinney was the fresh face of the Penny for Scotland campaign in 1999.

Now the finance secretary is holding the line against tax hikes and he is right to do so, he says.

"It gladdens my Tory heart" to see the SNP hold this line and his colleagues are happy to be "better together" with the Scottish government on this issue. 

• From April of this year, the UK rate of income tax will be reduced by 10p in the pound in Scotland, across the 20% band, the 40% band and the 45% band
• It will then be up to the Scottish Parliament to set its own rate to replace the 10p that has been taken out
• This rate could be exactly the same as the rest of the UK, or it could be higher or lower
• In his draft budget, John Swinney set the Scottish Rate of Income Tax at 10p - meaning it will remain the same as the rest of the UK

• Both Scottish Labour and the Scottish Liberal Democrats have proposed an 11p rate - meaning all bands in Scotland would be 1p higher than elsewhere in the UK
• Under the Scotland Bill proposals which are currently going through the UK Parliament, Holyrood would be given greater control over income tax rates and bands
• This would allow the Scottish government to create new tax bands, and to raise the rate of tax paid by higher earners without also raising it for lower paid workers
• But the Scotland Bill will not come into force until next year at the earliest

Finance Committee, external convener Kenneth Gibson says this year's timetable has been even more tight than usual and he thanks all those who helped with the committee's report, external.. 

Image source, bbc

Mr Gibson says the devolution of some tax powers and more to come has led to a different kind of scrutiny of the Budget Bill this year.

He says the committee supported the Scottish government’s proposal to set SRIT at 10p for 2016-17

The Labour MSP says Scottish Labour would raise income tax by 1p to avoid cuts to vital local services like education.

People on higher incomes will pay more than those on lower incomes, the words of Mr Swinney insists Ms Baillie.

She says Labour have done the detail, to much SNP backbench brouhaha.

Ms Baillie says the SNP could work with Labour to end Tory austerity, it is not to late. 

In December, finance secretary John Swinney ruled out an increase in Scottish income tax when Holyrood gets new financial powers this year.

Mr Swinney made the announcement as he unveiled his draft budget to MSPs in the Scottish Parliament.

He also announced a tax rise on many second homes and buy-to-let properties through a Land and Buildings Transaction Tax levy.

And Mr Swinney confirmed that the council tax freeze would continue.

The finance secretary warned that the Scottish budget was set to continue to reduce in real terms until the end of the decade, as he said it had done since 2010.

Ms Baillie says there are 40,000 fewer public sector workers with up to 15,000 more to go.

The Labour MSP asks where is the task force to save public sector jobs.

Mr Swinney intervenes saying he has asked councils to sign up to the council tax freeze, teacher pupil ratios and health and social care integration.

Which one does Jackie Baillie disagree with?

Ms Baillie asks if it is fair to pay a living wage to workers paid for by sacking thousands of their colleagues. 

Labour MSP Jackie Baillie says there is now £561 less spent per head spent on our school children.

Ms Baillie says local communities, local schools and local services are the victims of this budget with cuts to local government of hundreds of millions of pounds. 

This is "austerity on stilts".