Scottish Labour's wealth creation spokesperson Jackie Baillie says this is an austerity budget, but it does not have to be so. 

Ms Baillie says her amendment, which says that the Scottish rate of income tax should be set at 11p for 2016-17, 1p higher than the UK rate set by the Chancellor of the Exchequer, would achieve more. 

Mr Swinney says this is a budget that confronts austerity and stands in the face of a rise in income tax from the Labour Party and he moves the Budget Bill in his name.

The finance secretary says the government will freeze income tax and will deliver a pay rise  to around 50,000 of the lowest paid workers in Scotland.

"That’s the difference between the SNP and Labour. 

"We want to give the lowest paid a pay rise; Labour want to give them a tax rise."

Labour MSP Neil Findlay shouts how can you protect their income if they don't have a job.

The finance secretary hits back saying his government have kept their promise of no compulsary redundancies in public services.

Mr Swinney says Labour have not thought through their plans.

He goes on to say: "The only conclusion we can draw is that it’s unlikely anyone would receive this rebate on their tax rise."

Labour MSP Jackie Baillie asks what John Swinney thinks about the principle of what Labour are proposing.

The finance secretary says the SNP won't raise the tax of citzens in Scotland and Ms Baillie must explain how the "back of the fag packet" tax plan will work.

Mr Swinney says Labour will argue hey have a rebate proposal to mitigate the effects.

The immediate conclusion to draw from the very announcement of a rebate proposal, he says, is the recognition this tax rise is damaging to the incomes of low paid workers.

Opposition leaders will use this Stage 1 Budget Bill debate to challenge the Scottish government to raise extra money to protect public services. 

Finance Secretary John Swinney has vowed not to increase taxes for low paid workers. 

Both Labour and the Lib Dems have called on him to increase income tax in Scotland to 1p above the UK rate. 

The budget for 2016-17 marks the first time Holyrood ministers have been required to play a part in determining income tax rates in Scotland. 

The two opposition parties said a rise was necessary to provide almost £500m of additional funding for education and other services. 

With the Scottish rate of income tax due to come into effect from 6 April, Deputy First Minister Mr Swinney has pledged to keep payments in line with the rest of the UK. 

In addition, he said his draft budget would give up to 51,400 low paid workers a pay rise, by uprating the living wage and extending this to social care workers as part of the local government settlement.   

Labour has called for an immediate 1p increase in Scottish income tax rates.

The party said the move would raise about £500m every year, which it said would be enough to avoid cuts to education and other local services.

Holyrood will be given limited powers over income tax rates from April, with more flexible powers later due to be devolved under the Scotland Bill.

The Scottish government has said it will not alter income tax rates until these greater powers come into force.

But that will not be until next year at the earliest.

Under the more limited powers, which have been devolved under the Scotland Act 2012, any changes in income tax rates would need to be replicated across all bands.

In the December Budget Statement, the government proposed a Scottish Rate of Income Tax for the first time. 

Mr Swinney says the limited nature of the income tax power currently available to the Scottish Parliament only allows for a single rate to be set and then applied to all three income tax bands. 

This means any increase on the wealthiest would also apply to the lowest income tax payers. 

The finance secretary insists proposals from other parties to increase Income Tax by 1p next year will hit those taxpayers least able to pay.

He says newly qualified nurses and firefighters would be hit by the rise proposed by the opposition and the last thing he is going to do is put up their taxes.

On the fiscal framework, Mr Swinney insists "there is a long way to go" to reach agreement.

He insists: "I will not sign a deal that is harmful to the interests of the people of Scotland."

Finance Secretary John Swinney says the budget "promotes growth in the economy and reforms public services".

Mr Swinney says public spending in Scotland continues to face significant challenges, with another real-terms reduction applied to our total departmental expenditure limit in 2016-17.  

He says the settlement Scotland received in the UK Spending Review will see the Scottish budget continue to fall in real-terms in every year until the end of this decade.

MSPs will now debate the Budget (Scotland)(No.5) Bill, external at Stage 1 of its consideration.

Image source, bbc

Image source, Getty Images

MSPs will take part in a showdown vote later on income tax as opposition leaders challenge the Scottish government to raise extra money to protect public services.

Finance Secretary John Swinney has vowed not to increase taxes for low paid workers.

Labour MSP Margaret McDougall what skills and other training the government provides to people in Ayrshire who have been made redundant. 

Last December the Scottish government claimed funding for employment services, due to be devolved to Holyrood, would be cut by £40m after the chancellor's spending review. 

Fair Work Secretary Roseanna Cunningham said anticipated funding for employability services would reduce by an estimated 75%. 

She outlined "serious concerns" in a letter to the UK work secretary.

A UK government spokesman said Scotland would get its "fair share" of funds. 

Control over the Work Programme and Work Choice is due to be transferred to Scotland in 2017 as a result of the Smith Commission on further devolution. 

The services involved are those designed to get people with disabilities and on benefits back into work. 

SNP MSP Christina McKelvie asks when the Scottish government last discussed devolution of employment support services with the UK Government. 

SNP MSP Rob Gibson asks the Scottish government what aspects of fair work it has discussed recently with Highlands and Islands Enterprise. 

Finance Secretary John Swinney will lead a debate on his Budget Bill, external from 2.40pm

Conservative MSP Liz Smith asks the Scottish government what innovative steps it is taking to help improve skills and provide training for adults.

Fair Work Secretary Roseanna Cunningham says the Scottish government has not given up in seeking exemptions from the measures in the Trade Union Bill. 

Scotland should be exempted from the scope of Westminster's Trade Union Bill, MSPs on Holyrood's devolution committee have ruled. 

The committee said there was "widespread opposition" to the bill and called on the UK government to exclude Scotland from its reach. 

SNP and Labour members have voiced strong concerns about the bill and made efforts to have it blocked. 

A UK government spokesman said the bill was "clearly a reserved matter". 

MSPs have voiced dissent against the UK government's Trade Union Bill during a debate at Holyrood.

The matter was debated by the full parliament after a report condemning the Westminster bill was put together by the devolution committee. 

The SNP and Scottish Labour are both strongly opposed to the bill, and have made efforts to have it blocked north of the border. 

Conservative MSP Alex Johnstone alone defended the bill as "reasonable". 

Members lined up to speak out against the legislation, which seeks to tighten regulations on trade unions and make it more difficult to call strikes. 

MSPs voted to support the conclusions of the committee by 99 to 14, while an amendment from Labour calling on parties to support efforts to block the bill was also overwhelmingly accepted.