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Scottish Labour leader Kezia Dugdale intervenes to say the minister is going to make £327m of cuts to services and asks if he thinks he pays enough tax given these cuts.

Mr Mackay says he is not just proposing tax increase the basic rate on everyone who pays tax, passing on austerity to Scottish households.

He says the £327m figure is not like for like and ignores a number of funding streams.

Finance Secretary Derek Mackay says the Scottish government have faced a reduction in its discretionary spend. 

Mr Mackay says the Scottish government are trying to protect public services. 

The finance secretary says an additional £700m of investment in public services has been proposed along with fair tax rates.

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Finance Secretary Derek Mackay defended his plans for tax as MSPs questioned him over his draft budget earlier this month.

Holyrood's finance committee quizzed Mr Mackay about the budget, which will see the first use of new tax powers.

The government's plans, which Mr Mackay said would provide "stability and certainty", came in for criticism from opposition members.

There will be a separate vote on the government's tax proposals before the final budget vote in February.

Scotland's parties have failed to reach a consensus over tax, with previous Holyrood votes ending in stalemate.

• Look back on the committee meeting on Holyrood Live

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Finance Secretary Derek Mackay says this is a parliament of minorities and finding consensus is crucial in the budget process.

Mr Mackay says the SNP is by far the largest party and its mandate must be respected.

He says this will be an historic budget and he says 9% in real terms 2010-11 and to 2019-20.

Scotland's finance secretary Derek Mackay has pledged a funding increase of £240m for local services as he set out his draft budget last month. 

But opposition parties said the amount of cash going direct to councils will be cut in real terms.

Mr Mackay also confirmed he will not change income tax rates or bands - but will not replicate the UK Treasury's tax cut for higher earners.

This means the 40% income tax rate will start at £43,430 in Scotland.

But it will start at £45,000 elsewhere in the UK.

• Holyrood's committees break down the budget

Here is the Scottish government amendment.

Image source, Scottish Parliament

Philip Sim
BBC Scotland political reporter

The government will probably lose this vote.

Labour have drafted their motion in such a way to ensure support from the other opposition parties; none of them do support the budget "in its current form".

But Mr Mackay has acknowledged that. He knows he needs to move in some way towards the opposition parties; that's the point of the ongoing negotiations.

The debate itself is likely to follow a familiar format; there are enough different sets of figures in the 178-page draft for all sides to craft arguments.

For example Labour pointing to one set of numbers to show core council budgets falling, while the SNP point to another set to show local services funding on the rise. The same dance will repeated with the Tories over Scotland's funding from Westminster.

In terms of who is more likely to partner up with the SNP in the final budget votes, at the moment the Lib Dems seem the more likely candidate.

The Greens want to see changes over tax - and Mr Mackay is unlikely to budge on tax. The Lib Dems are asking an awful lot in terms of spending - but there is common ground on which to work.

Mr Rowley says Derek Mackay said his budget renews the Scottish government's commitment to public service reform.

He says we have people ready to leave hospital and go home but cannot get a good enough care package to go home.

"We have the opportunity to give children a better future," he says. 

Scottish Labour leads a debate at Holyrood urging opposition parties to reject the government's current budget proposals.

Finance Secretary Derek Mackay is negotiating with opposition MSPs to win backing for his budget.

The Greens and Lib Dems have outlined changes which could win them over, on tax and spending respectively.

MSPs will vote on a Labour motion stating the parliament does not support the draft budget "in its current form".

With the SNP a minority government, Mr Mackay will need a handful of opposition members to at least abstain in order to get his budget through Holyrood.

There will be separate votes on the tax and spending proposals in February.

Image source, PA

Mr Rowley says the SNP are tinkering around the edges of council tax and has reneged on its pledge to get rid of the council tax.

The Labour MSP says: "The council tax was unfair in 2007 and is just as unfair today."

He calls for the SNP council tax to be abolished. 

Mr Rowley says since 2010, 27,000 jobs have disappeared from local councils and the latest cuts will mean more job losses.

The Labour MSP says his party are asking for the government to increase income tax by 1p.

Scottish Greens Co-convener Patrick Harvie intervenes to ask why the hike should be focused on basic rate taxpayers.

Mr Rowley says the proposals would see high earners paying the most. 

He says it would be the collective power of everyone paying a bit more that would mean more investment in public services. 

Mr Rowley says politicians in Holyrood are trying to take more and more of the power to the centre.

The Labour MSP says the relationship between central and local government has broken down. 

He says one size fits all central control is not good for Scotland.

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SNP MSP Bruce Crawford asks if Mr Rowley understands that by tabling his motion today he is undermining the work of the finance committee.

hope the finance secrtary will listen to the concerns expressed today.

He says there has been cut to the local government budget of £327m and Mr Mackay should think again.

Labour MSP Alex Rowley says he wants to build a consensus about the type of public services that are required in Scotland and how best to fund them.

Mr Rowley says this requires more direct government action and it should increase the tax take to do so.

He says if we are to tackle inequality and close attainment gap, changes are required. 

Scottish Labour will now lead a debate on the draft budget.

Labour MSP Alex Rowley tables a motion asking Parliament not to support the Scottish government's budget in its current form. 

Here is Mr Rowley's motion:

Image source, Scottish Parliament

SNP MSP Alex Neil says he speaks as one of the million Scots who voted for Brexit for progressive reasons.

Mr Neil says the UK government must recognise we are four nations with four legislatures in the UK.

He says it will have to take cognisance of the views of Scotland, Wales, Northern Ireland and England.

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Mr Neil asks if the time has not come to demand of the UK government that all four nations have an inside track in these negotiations.

Mr Russell says there were Tory cheers when Mr Neil started but none at its close.

He says the nations must be included in the negotiations or that would be another failure by the UK government.

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Brexit Minister Mike Russell says he does not think the Lib Dem approach smacks of any seriousness at all.

Mr Russell says the proposal will not get the backing of the House of Commons.

Lib Dem MSP Willie Rennie says a case can be built for a Brexit deal referendum.

Mr Rennie asks if the Scottish government will back the Scottish Lib Dem's suggestion for a Brexit deal referendum.

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Brexit Minister Mike Russell says he cannot give a timetable for the next independence referendum.

Mr Russell says the options we have placed on the table are being closed down by the Westminster government. 

That is why the timetable lies with the Westminster government, he says. 

Greens MSP Ross Greer says his party are disappointed by the outcome of the ruling.

Mr Greer says Scotland has not been treated as an equal partner.

He says options are fast closing and asks for a timetable on a Referendum Bill.