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Labour MSP James Kelly says this is a significant day for the parliament.

Mr Kelly says the consequences of backing the Scottish Rate Resolution will mean £170m of cuts to local councils.

The Labour MSP says if parliament votes to pass the resolution at 5.15pm then it will be a lost opportunity to address the issues facing communities.

SNP MSP John Mason says we do not know how sensitive people's behaviour is going to be to tax rate differences between Scotland and England.

Mr Mason says, by making income tax slightly different than that in England, the government can test people's reaction to it.

The SNP MSP says a graduated approach is important. 

He says there is an argument for income and corporation tax to be far more aligned.

Mr Mason says the UK should be setting its budget first and Scotland's budget should be second. 

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Scottish Lib Dem leader Willie Rennie says Mr Harvie's abstention will be one of the most highly principled abstentions ever known.

Mr Rennie says Mr Harvie is responsible for this budget and he has to own it instead of skulking behind his abstention.

The Lib Dem says instead of adding £2,000 to his tax bill as the Scottish Green Party co-convener had originally wanted, but instead Mr Harvie now backs an £82 rise on his income tax.

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He says Mr Harvie should be embarrassed that he is supporting this budget.

Mr Rennie says there is not one single environmental programme that is being funded as a result of the deal and Patrick Harvie should be ashamed of what he has achieved.

PH should be ashamed of what he has achieved.

Mr Harvie asks for any budget concession that has ever come close to £160m for local councils 

What has his party achieved not a penny.

Mr Rennie says he said that with a straight face as Derek Mackay had the money all along and Mr Harvie has been duped.

Mr Harvie says he agrees with the criticisms of raising the basic rate but there is no reason to have only one basic rate. 

The Scottish Greens Co-convener says there is mixed evidence on the likelihood of tax avoidance and he would like to know what additional research the Scottish government will commission on this.

He says it is "undeniable" that Parliament will have to use all of its tax powers in a more creative way in future. 

"This debate is going to become more difficult in future years if the government does not move from the status quo," he says. 

Mr Harvie says his party will not block the rate resolution. 

Green MSP Patrick Harvie says if his party were suddenly to be overcome with a fit of pique and voted against the Scottish Rate Resolution, the budget would fail and £160m for local councils would be lost and the budget would fail.

Mr Harvie says 32 local authorities would have to dust down the cuts that were avoided thanks to the budget deal.

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Mr Harvie says he wished to goodness the situation for local government was better and had Labour negotiated they might have achieved as much as his party.

Labour MSP Daniel Johnson says it is only £29m not £160m with the difference being underspend and if the rate resolution was defeated the government would have to come back and negotiate.

Mr Harvie says the budget amendment means£160m into the local government allocation this would be lost if the Greens changed their position.

Scottish Greens Co-convener Patrick Harvie says what he has heard is growing praise from SNP backbenchers and criticisms from opposition parties.

Mr Harvie says the reality is that he agrees with the criticisms that the government's tax position is too tame. 

The Scottish Greens Co-convener says "we need to forgo the comparisons with the tax position in England."

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Scotland's finance secretary has moved to quell concerns over rapidly rising business rates by capping increases for an additional 8,500 firms in the hospitality sector.

The 12.5% cap on any rise will also apply to more than 1,000 office premises in Aberdeen and Aberdeenshire.

In a statement to Holyrood, Derek Mackay also outlined a package of relief for the renewables sector.

The Tories said the government had been "asleep at the wheel" over the issue.

An assessment of how much each Scottish firm will pay in non-domestic rates is currently under way, and is due to take effect from April.

The last revaluation in Scotland was carried out in 2010 - and there has been considerable disquiet from companies who have seen big increases in the amount they have to pay.

Labour MSP Daniel Johnson says budgets are about choices and this Parliament now has choices as to what the rate of income tax should be.

Mr Johnson says this Parliament was founded on the principal of making different decisions. 

The Labour MSP says the reality is that the SNP chooses not to use its tax raising powers but wants credit for forcing councils to raise council tax.

He says "it is ludicrous to take credit for council tax increases."

What new tax powers came to Scotland in 2016?

In April 2016:  a Scottish Rate of Income Tax was introduced. It meant that...

• of the 20p now being paid from £1 of basic rate income, 10p of that is going to be levied by the Scottish Parliament
• and that 10p amount could be varied up or down.

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In February last year, Scotland's then Finance Secretary John Swinney, choose not to vary the figure. 

And why not? Well, the minister believed the new power was inflexible as he will not have full control over bands and rates of tax.  

In April 2017: the Scottish Parliament will receive a package of power including power to set the rates and bands of income tax on non-savings and non-dividend income/

The formal transfer of those powers from Westminster to Holyrood took place last year.

A Scottish Conservative-appointed commission argued that the total tax burden should not rise any higher in Scotland than it is in the rest of the UK. It backs the UK government's approach to thresholds.

Scottish Labour has put on record that it does not want to see the 40p tax threshold change north of the border. This is at odds with the UK party which has not objected to the Conservative government's proposal.

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Scottish Labour has also made clear that it wants to put 1p on tax rates in order to raise money "to protect public services". It said it could give a rebate to those earning less than £20,000. In addition, it would like to see the highest rate of tax - affecting those earning more than £150,000 a year - raised from 45p to 50p.

The Scottish Liberal Democrats want a similar penny increase as Scottish Labour, aimed at protection of education spending. It also says it objects to the 40p threshold change.

The Scottish Greens say there should be new rates and bands to give a tax cut to those on lower than average incomes and workers on higher wages should pay more tax.

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SNP MSP Kate Forbes says today's debate is not so much about tax, but about the hard working men and women from Lerwick to Lockerbie.

Ms Forbes says thanks to these people for raising income tax and says "it is not our money it is theirs".

She says the opposition parties had their income tax proposals rejected at the ballot box.

The SNP MSP says the Tory and Labour income tax proposals were ludicrous.

Tory MSP Liam Kerr says this government has been given the task of setting income tax.

Mr Kerr says it has chosen not to make Scotland a more progressive nation by making taxpayers pay more than their counterparts in England.

"You cannot tax your way to prosperity," he says.

The Tory MSP says those starting new businesses are more likely to do so in England than in Scotland because of the increase in rates. 

Mr Rowley calls on the Scottish Greens to join his party and reject the motion.

The Labour MSP says "we have a chance to shape the future provision in public services." 

"We have the chance to provide better care where it is needed," he says.

"Choose against this motion today and choose a better Scotland," Mr Rowley says.  

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Mr Rowley says the Tories are wrong saying there cannot be a tax differential as it would damage the economy.

He says it is Tory austerity that is doing that and the Scottish government for using Holyrood as a conveyer belt for that Tory austerity.

Labour MSP Alex Rowley says there is a great responsibility on all parliamentarians in making these decisions. 

Mr Rowley says the impact on the economy and public services are the key considerations for Scottish Labour on this.

The Labour MSP says it is important to make sure tax bands are fair and that households are able to pay them.

He says, in a time where investment in the economy is needed, asking 1% of the country's top earners to pay slightly more is reasonable. 

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Mr Fraser says in the last half hour the finance secretary has come to the chamber and produced from nowhere £40m.

The Tory MSP says: "There is no-one as magical as Mr Mackay at producing money from no-where to get him out of a budget whole."