Mr Mackay says: "I can confirm that our increase in health resource funding in 2018-19 will not be £200 million - it will be more than £400m,taking our total frontline investment to over £13bn in the coming year."

Mr Mackay says: "Our approach to health and care is one of reform and investment."

"That is why, in the coming year, we will invest £110m in the reform of primary care – supporting our GPs and health centres to meet the changing needs of our people.

"We will increase our direct investment in mental health, and Child and Adolescent Mental Health in particular, by a further £17m - the third annual increase in a row, which will help to deliver an additional 800 mental health workers over this Parliament.

"This budget will also deliver over £550m in 2018-19 in direct support of social care and integration through Scottish government and NHS investment."

The Scottish Government is on course to miss its own targets for building affordable housing by thousands of homes, according to analysis of the latest figures, reported the Scotsman in November.

Rates of home completions are far below what is needed to reach targets set just last year, the Scottish Labour Party said.

And it claimed the targets were already too low to deal with a housing crisis that has driven 21,000 people to ask charities for help dealing with homelessness or avoiding becoming homeless in the past year.

In 2016, Scottish ministers pledged £3bn to build 50,000 affordable homes, 35,000 of which are destined for the social rented sector.

"Now is the time to lift the 1% pay cap," says Mr Mackay.

"Today, I have published a progressive pay policy. I can confirm that we will deliver a guaranteed minimum pay increase of 3% for all public sector workers earning £30,000 or less.

"For those earning above £30,000, we will limit the increase to 2% and apply a cash cap of £1,600 to those earning £80,000 or more. This demonstrates our commitment to closing the gap between the lowest and highest paid."

Image source, Getty Images

Philip Hammond confirmed the Scottish police and fire services would be eligible for refunds from April 2018.

This brings Police Scotland and the Scottish Fire and Rescue Service into line with their counterparts elsewhere in the UK - but tax paid since the creation of the national forces will not be reimbursed.

The two services pay about £35m a year in VAT - bringing the total bill since they were set up four years ago to £140m.

Scottish ministers have repeatedly called on the UK government to end the "glaring disparity" in the way that VAT affects emergency services across the UK, pointing out that territorial police and fire services in England and Wales already get refunds on their VAT bills.

Mr Mackay says: "This budget supports the first investment in a new £50m Tackling Child Poverty Fund which will help address the underlying social and economic cause of poverty.

"And we will also continue to mitigate UK Welfare reform, investing over £100m on interventions including bedroom tax reversal and the Scottish Welfare Fund."

The finance secretary goes on to say: "I can confirm I will allocate additional funding in-year to support the landmark step of increasing Carer’s Allowance.

Mr Mackay says: "One of the most devastating results of Tory austerity has been a rise in rough sleeping and homelessness."

"Our Programme for Government set out a national commitment to eradicate rough sleeping and transform the use of temporary accommodation."

"In 2018-19 we will invest £10m in an ‘Ending Homelessness Together Fund’ that will total £50m over the next five years.

"This will drive change and improvement in line with the recommendations of the Homelessness and Rough Sleeping Action Group."

Mr Mackay says: "New figures out this week show that since 2007 this government has delivered nearly 71,000 affordable homes - and we are building social rented housing at twice the rate of the government in England.

"Our commitment to deliver 50,000 affordable homes over the five years of this parliament is a significant challenge but one we are determined to meet.

"The benefits of this investment will be felt throughout our society for generations to come.

"I am therefore delighted to announce investment in 2018-19 of £756m - part of our commitment to invest over £3bn in affordable housing over this parliament."

Mr Mackay says: "We will deliver more than £20m of additional investment to protect the police revenue budget, and an additional £5.5m for continued transformation of the fire service.

"Scotland’s police and fire services will also retain the full benefit of, at long last, having the ability to recover VAT - boosting their spending power by £35m in 2018-19."

Mr Mackay says: "I can announce today that the local government resource budget will be protected in cash terms and the capital budget will be increased in real terms - resulting in a total increase in local authority core funding of £94m."