Image source, bbc

Mr Kelly says 260,000 young people living in poverty is scandalous.

That's whey Labour back the £5 top up to child benefit campaign, he says.

He says Labour's plan is a progressive plan

He says: "Labour will oppose this budget all the way to Stage Three."

On local government funding, James Kelly says £540m is required just for councils to stand still, according to COSLA.

He warns job losses, reductions in teachers and classroom assistants, and fewer library services will be a result of this.

How can we grow the economy without investing in educations services, he asks.

James Kelly says Labour's amendment is to encourage MSPs to support his party's £1bn plan.

Instead, he argues, the SNP are "tinkering around the edges" on tax.

Finance Secretary Derek Mackay asks whether behavioural change was taken into account with Labour's tax proposals.

Mr Kelly says his party worked with the experts in SPICe.

Top rate payers will be asked to pay 50%, he states.

"It's not an unreasonable ask."

Image source, bbc

Labour MSP James Kelly says: "This is a budget that falls well short of what is required."

Mr Kelly says: "The grubby deal that has been announced today by Derek Mackay, the Green SNP deal, just doesn't cut it."

"Scotland's communities have been sold short by the SNP and Greens today."

Tory MSP Murdo Fraser says that between 2007-2022, the growth gap in Scotland will be £16.5bn.

He lists a number of business organisations which urged the Scottish government not to increase tax.

Mr Fraser highlights a number of times SNP members have backed tax cuts, suggesting that they are happy to call for them but when in power, they "put taxes up".

He suggest the Scottish government has wasted public money through to delayed discharge, NHS agency staff and the IT farm payments system problems.

These are labelled as "vanity projects."

Mr Fraser says Mr Mackay should apologise for breaking his tax pledges.

He says taxes will go up and people in Scotland will see their services cut in education, children's ervices and services for the elderly.

The Westminster block grant is up in real terms compared to previous years, he insists.

This is met by derision from the SNP back benches and supporitive noises from behind Mr Fraser.

Mr Fraser says there has been no real terms cut in the Scottish government's discretionary spending since 2006/7.

Tory MSP Murdo Fraser says "you could have knocked me over with a feather" when it became clear a deal had been struck between the Scottish Greens and SNP.

He accuses the Greens of "falling sweetly into line".

Mr Fraser warns Scotland will be perceived as a high tax economy, saying Mr Mackay's hand is in one pocket of workers, while Mr Harvie's is in the other.

He suggests the budget can be summed up in four words: "Pay more, get less."

Image source, bbc

Mr Mackay says free prescriptions, free personal care and free higher education services will be protected.

The finance secretary says: "As a result of our actinos we are able to deliver on all of our commitmments and invest an additional £400m in our NHS."

He calls on MSPs to back the general principles of this Budget Bill.

Mr Mackay says local authorities can raise additional money by varying council tax.

He says the Scottish Rate Resolution will be debated in three weeks time.

Tory MSP Murdo Fraser asks what the additional income tax liability is compared to the rest of the UK.

Mr Mackay hits back and says: "A majority of people in Scotland will pay less tax than they would if they lived elsewhere in the UK."

Image source, Getty Images

Moving to tax, Derek Mackay reiterates that anyone earning less that £33,000 will pay no more than they did last year.

On the anomaly around the higher rate threshold seeing tax reduce, the finance secretary confirms action to remove the anomaly - by increasing the rate to by 1% to £43,430.

This will raise an additional £55m over and above the previous proposals, he says.

This additional revenue means he will increase local government funding by £159.5m.

Image source, bbc

Mr Mackay says the government will increase the threshold for the 3% uplift to £36,500 increasing from 51% to 55% those in the public sector recieving it.

He says that will include nearly 80% of NHS staff and the vast majority of teachers.

The finance secretary urges the UK and Welsh governments to follow suit.

In December's Scottish budget, Finance Secretary Derek Mackay had proposed a 3% pay rise for public sector workers earning less than £30,000 a year and 2% for those earning more.

Image source, Cal Mac

A study looking at the future of ferry services for the Western Isles has begun.

It is looking at potential improvements such as new timetables, buying new boats, redeploying existing ferries to other routes and upgrading harbours.

Consultants commissioned by Transport Scotland will seek feedback from island communities who rely on the services and also visitors to the isles.

A report on the study will be published next year.

Derek Mackay says there is a 64% increase in the economy, jobs and fair work portfolio to support enterprise agencies and the new manufacturing institute.

New railway investment and improvements to the A9 is highlighted.

Mr Mackay also announces support for the inter-island Northern Isles ferry service - met by applause in the chamber.

An additional £10.5m is being allocated the Shetland and Orkney councils, with efforts being made to find a long-term solution.