Earlier this month, MSPs voted to set a Scottish rate of income tax for the first time, opting to keep rates at current levels. 

Holyrood has been given new powers over the income tax rate, with Labour and the Liberal Democrats calling for a 1p increase to raise extra funds. 

However, Finance Secretary John Swinney insisted the rate should stay the same. 

After a heated Holyrood debate on the topic, MSPs voted by 74 to 35 to accept the government's plan to maintain the income tax at current levels. 

Opposition parties said an increase could create funds to protect services, but Mr Swinney said it would punish taxpayers on low incomes. 

Scottish Conservative MSP Murdo Fraser welcomes the additional funding to address the attainment gap, but again says that the money should follow the children not postcodes.

Mr Fraser says the debate around the budget has been dominated around the setting of the Scottish rate of income tax.

He says his party does not believe people in Scotland should pay more income tax than the rest of the UK.

Mr Fraser says the SNP are happy to join with the Scottish Conservatives in "a new tax payers alliance".

The Scottish Labour leader says today MSPs can vote to end austerity.

She says SNP MSPs can join her party and end austerity today.

Ms Dugdale says the SNP's cuts "are real and they are painful".

The Scottish Labour leader says the choice is use Holyrood's powers or choose cuts.

Scottish Labour chooses to use Holyrood's powers she insists.

Ms Dugdale says the SNP will unite with the Conservatives at decision time to impose George Osborne's cuts. 

The deputy presiding officer has to intervene to ask MSPs to extend Ms Dugdale the same courtesy as was extended to the finance secretary. 

Ms Dugdale continues says: "This budget will inflict unnecessary pain on every community in Scotland."

She says the finance secretary should have talked to the hundred trade unionists protesting outside Holyrood.

SNP MSP Kevin Stewart intervenes saying there is no detail behind Labour's £100 rebate.

Ms Dugdale lists the academics and organisations who she says backs her policy.

Labour called for an immediate 1p increase in Scottish income tax rates at the beginning of February. 

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.

Scottish Labour leader Kezia Dugdale says the Scottish rate of income tax should be set at 1p more than George Osborne has set it.

Ms Dugdale says it is beyond any reasonable doubt that Labour's policy is fair.

Low earners will be protected, she insists, thanks to a £100 rebate.

Scottish Labour Leader Kezia Dugdale says this is a day of decision and her party will choose to use the powers the parliament has.

Ms Dugdale says her party will oppose the measures laid out in this budget bill.

The finance secretary concludes saying he believes that the Budget (Scotland) (No 5) Bill deserves support from across the chamber.

The finance secretary announces new funding to help close the attainment gap in the country's schools as part of this final budget debate.

Other measures in the budget: 

• A new 3% levy of the purchase price of second homes and buy-to-let properties
• Continue the council tax freeze, and to invest £200m over the next five years in six new NHS treatment centres
• Total revenue funding for local government of £9.5bn - which Cosla says amounts to a 3.5% cut 
• A commitment to increase free childcare for three and four-year-olds to 1,140 hours per year in the next parliament 

• College funding to be protected, and commitment to free tuition to continue 
• £33m for a school attainment programme as part of plans to close the attainment gap between the wealthiest and most deprived pupils 
• Work to begin on construction of the Dalry by-pass in Ayrshire and improvements to the Haudagin roundabout in Aberdeen 
• 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 Swinney announces he will double the amount of funding to the attainment fund over the next three years, taking it to £160m.

Mr Swinney says: "We have not made and will never make education dependent on the ability to pay.  No front door fees. 

"No back door taxes.  

"We will keep tuition free, saving 120,000 students in Scotland up to £27,000 over the course of their degree."

Mr Swinney says: "Education lies at the heart of inclusive growth and tacking inequality and we are determined to improve educational outcomes."

He says: 

• 607 schools have been replaced or  refurbished 
• free school meals for all children in primaries 1 to 3 have been introduced
• young people achieved a record number of Higher and Advanced Higher passes in 2015  
• the number leaving school for a positive destination in education, employment or training is now at a record high of 93 per cent.

Labour MSP Dr Richard Simpson details cuts to Clackmannanshire third sector organisations of over 7%.

Mr Swinney insists these are decisions for local authorities.

Following an intervention from Scottish Labour deputy leader Alex Rowley, Mr Swinney says job losses in the public sector has been grossly exaggerated. 

Mr Swinneys says progressivity in itself is not sufficient justification for increasing the tax burden on the lowest paid taxpayers. 

"They won’t care that others are paying more, they’ll care that they are paying more.  That’s not a burden that I’m willing to impose."

The finance secretary says instead of increasing the tax burden, this budget protects household incomes. 

The finance secretary says two weeks ago Holyrood voted to set the Scottish Rate of Income Tax at 10p.

Mr Swinney says this means that the lowest paid taxpayers in our society are protected, and that the rate of tax paid by Scottish residents in 2016-17 will be the same as it is today.

Mr Swinney says this is "an historic budget, given the context provided by this week’s agreement with the UK Government on the fiscal framework that will support the Scotland Bill". 

Finance Secretary John Swinney leads the final debate on his Budget Bill, external.