The deal with the Greens adds an extra £160m of direct funding for councils beyond the original draft, although Labour argue this remains a reduction on previous allocations.

It would also see a freezing of the threshold for the higher 40p rate of tax, which was originally to rise with inflation to £43,430 but will now be fixed at £43,000.

It will start at £45,000 elsewhere in the UK, which the Conservatives claim would make Scotland "the highest-taxed part of the UK".

Green co-convener Patrick Harvie, a member of the finance committee, said this was "the biggest budget concession in Holyrood's history".

Image source, bbc

In an analysis of the deal, external the Fraser of Allander Institute think-tank said it is "as yet unclear" where the extra money included in the deal has come from.

The group, which also raised concerns about "double counting" in the original draft of the budget, called on the government to set out the exact breakdown of where the funds were sourced.

They said: "Obviously there is clearly a negotiating advantage in the government holding back some monies as part of their tactics to get the bill through, but similarly one can see MSPs from now on demanding greater clarity over what is really on the table."

Mr Mackay says "two-thirds of people will be paying the same or less business rates as before."

He says the government has taken the right decisions around business rates.

Speaking at First Minister's Questions last week, Nicola Sturgeon said her priority was not to cut taxes for the top 10% earning Scottish taxpayers.

But Scottish Conservative leader Ruth Davidson accused Ms Sturgeon of setting out to make Scotland the highest taxed part of the UK.

Previous votes on the budget proposals and on taxation had failed to find any consensus between the parties.

However Mr Mackay confirmed on Thursday morning that a deal had been struck with the Greens, centred around £160m of extra funding for the core council grant.

Image source, bbc

Conservative MSP Liam Kerr says there is an extra £60m from around business rates.

Mr Kerr says in the North East there are intolerable tax hikes on businesses and there will be big cuts in there resources.

He asks why he would not use this extra business rate money to ameliorate these problems.

Mr Mackay says he is very aware of the issues in the North East and he held a constructive meeting in Aberdeen to discuss them.

The finance secretary says money raised from business rates remains in the local area and thousands of businesses will pay not rates at all. 

He says there is a good national package of business relief. 

Committee convener Bruce Crawford says there would be an "almighty outcry" if some of this additional money is coming from business rates.

Mr Mackay says there will be no impact on businesses because of decisions the government has made.

Brian Taylor
BBC Scotland PolOut of media player. Press enter to return or tab to continue. Caption Murdo Fraser's 'lentil-munching sandal-wearing' jibe at Greens Party politicians frequently gain succour from identifying and targeting villains. In search of suitable hate figures, their own ranks generally suffice. Sometimes, however, they are obliged to look beyond their own back or front benches. Step forward the new target for disparate opprobrium. Patrick Harvie. (Hiss and, indeed, boo!) For the Tories, Murdo Fraser could scarcely conceal his elegantly contrived contempt. Mr Harvie, he suggested, was the Hard Left, high tax leader of a bunch of sandal munching, lentil wearing reprobates. (Or it might have been the other way round.) Bold Italic Link Ordered List Unordered List Add Content Text Image Media Quote Email SMS Tweet Social Tags Search tags Image missing Brian Tayloritical Editor

Party politicians frequently gain succour from identifying and targeting villains. In search of suitable hate figures, their own ranks generally suffice.

Sometimes, however, they are obliged to look beyond their own back or front benches. Step forward the new target for disparate opprobrium. Patrick Harvie. (Hiss and, indeed, boo!)

For the Tories, Murdo Fraser could scarcely conceal his elegantly contrived contempt.

Mr Harvie, he suggested, was the Hard Left, high tax leader of a bunch of sandal munching, lentil wearing reprobates. (Or it might have been the other way round.)

Image source, bbc

The finance secretary says the fluidity of the profile within the £220m will change but the figure itself will not.

Mr Mackay says the budget change carries over from one year to the next.

He says that level of carry over is quite normal.

Committee convener Bruce Crawford asks where the additional funding is coming from.

Mr Mackay says the figures will be fluid until the end of the financial year.

He says moving from draft budget to now, he has had more of a chance to look at forecasts and non-domestic rates.

The finance secretary says the government has changed its tax position which will make extra funds available.

Finance Secretary Derek Mackay says the amendments allocating the further £160m for local government have been tabled.

Finance Secretary Derek Mackay commends the committee on its work in stage one of the Budget Bill.

Mr Mackay says there have been differences in opinion at stage one of the budget.

He says there has been an increase in funding for teachers and their pension schemes. 

The Scottish budget has been voted through the first stage of the legislative process after a deal between the SNP and Greens.

MSPs backed Finance Secretary Derek Mackay's tax and spending plans by a margin of 67 to 59.

A deal was struck with the Greens totalling £220m of extra spending, including £160m for local authorities.

The deal will also see the threshold for the 40p rate of income tax frozen at £43,000.

• Look back on the budget debate and vote

Image source, bbc

Finance Committee convener Bruce Crawford welcomes Finance Secretary Derek Mackay and his officials.

Image source, bbc/PA/Scottish Parliament

First up this morning, we will bring you full and extensive coverage of the Finance Committee

The committee will take evidence on the Budget (Scotland) Bill at stage 2 from: 

• Finance and the Constitution Secretary Derek Mackay 
• Graham Owenson, Head of Local Government Finance, Scottish government
• Jonathan Sewell, Head of Income Tax and Fiscal Adjustments Unit, Scottish government
• Gordon Wales, Director of Financial Management, Scottish government 

Image source, bbc

The Finance Committee will now question Derek Mackay about the budget deal he struck with the Greens.

The finance secretary gives evidence as the budget moves through the committee stage of the legislative process at Holyrood.

Mr Mackay agreed a deal with the Greens based on extra funding for councils and tweaks to tax thresholds to get the budget through all three stages.

All other opposition parties opposed the draft budget in the first vote.

Following the committee stage and a week of recess, MSPs will vote on the final tax and spending proposals in the week beginning 20 February.

The finance committee's report on the budget said it was "critical" there was "complete transparency" over the plans, given the potential for "a much higher level of uncertainty and volatility" in budgets due to Holyrood's new powers and Brexit.

Good morning and welcome to our live coverage of the Scottish Parliament for Wednesday 8 February 2017.

We begin with the Finance Committee as it takes evidence from Finance Secretary Derek Mackay on the budget, followed by an evidence session on the Air Departure Tax Bill.

In the chamber this afternoon, we begin with portfolio questions as economy, jobs and fair work ministers take the hot seats followed by finance and the constitution ministers.

The Scottish government will then lead a debate on the future of the Jobcentre Plus network in Scotland.

After decision time, SNP MSP Bill Kidd will lead this evening's member's debate entitled 'The Jimmy Reid Foundation Report, Trident and its Successor Programme'.