Image source, Getty Images

SNP MSP Christina McKelvie will now lead a member's debate entitled 'Quick Credit Voucher, Tackling Fuel Poverty in Scotland'.

The Quick Credit Voucher scheme from Scottish Power offers a £49 credit payment designed to support customers who are referred to foodbanks and may be in need of fuel assistance.

The scheme is being piloted at the Hamilton District Foodbank.

The Hamilton, Larkhall and Stonehouse MSP praises Scottish Power for showing an ethical and morally responsible approach in assisting customers to tackle fuel poverty.

MSPs vote to pass the Scottish Rate Resolution motion, with 67 MSPs and with 50 against.

So it's game on for the Budget Bill tomorrow.

Join us for Stage 3 proceedings from 2.40pm.

Image source, bbc/PA/GettyImages/Scottish Parliament

MSPs vote on the Scottish Rates Resolution.

Tory MSP Murdo Fraser notes the SNP has previously called for cuts to copropration tax, air passenger duty, fuel duty and others.

Did they ever say how these cuts would be paid for, he asks.

"What a ridiculous position from Murdo Fraser", Derek Mackay responds.

The Labour party is proposing to align itself with the Conservatives by voting against the rate resolution today, Mr Mackay says.

The proposals commands the support of the Scottish people and it deserves the support of parliament at decision time, the finance secretary argues.

Changes to the Scottish Government's budget will raise an extra £62 million, the Scottish Fiscal Commission has confirmed.

The independent body has published official forecasts for income tax revenue, updated to reflect revisions to the 2018/19 tax and spending plans approved by MSPs last month.

The extra revenue comes from a change to the higher rate threshold and the extension of the public sector pay rise.

Image source, SFC

An anomaly in the draft budget proposals from December would have seen those earning between £43,525 and £58,500 paying less tax rather than more.

Finance Secretary Derek Mackay said this would be addressed by changing the higher rate threshold to £43,438 rather than the £44,274 that had originally been proposed.

The commission forecasts the move will raise a further £55 million, taking the total additional revenue raised by the final income tax policy to £219 million.

The extension of the Government's public sector pay policy to apply to 75% of public sector workers is forecast to raise a further £7 million in income tax.

Here is the revised forecast from the SFC., external

Image source, bbc

Mr Mackay says Murdo Fraser just can't accept the fact 70% of taxpayers will pay less under these plans and Scotland will be the lowest taxed part of the UK.

A majority of basic rate tax payers will actually pay less he says.

The SNP MSP says if the Tories keep propagating a negative image about Scotland's tax regime then no wonder the preception is negative.

He says his plans are fair and progressive.

Image source, bbc

In December we reported that Scotland's economy was facing "subdued" growth over the next five years, according to the Scottish Fiscal Commission.

The independent body had predicted the Scottish economy will grow at less than 1% per year until 2022.

Its five-year forecast suggested GDP growth will be 0.7% in both 2017 and 2018, rising to 1.1% in 2022.

It said the outlook was "driven by slow productivity growth and exacerbated by demographic challenge

Finance Secretary Derek Mackay begins by stating that on the Scottish economy is resilient, as indicated by a range of indicators.

He accuses the Conservatives of trying to talk it down.

The cabinet secretary notes Brexit has knocked consumer confidence, which he places at the door of the UK government.

Mr Mackay goes on to list measures taken by the Scottish government to stimulate the economy - such as R&D investment, the South of Scotland enterprise agency and growing modern apprenticeships.

Image source, bbc

Tory MSP Gordon Lindhurst asks how much tax revenue will be lost if this budget goes through.

Mr Lindhurst says: "This is the pay more get less budget."

Image source, bbc

I'm glad you asked again, so here we go.

It is the non-savings, non-dividend (NSND)income tax rates and bands are proposed in the draft Budget document and passed by the Scottish rate resolution.

Stage 3 of the of the Budget Bill cannot begin until the Scottish rate resolution motion is agreed by Parliament.

So this debate is as crucial as the final debate on the Budget Bill, so best buckle up.

Click here for the Scottish government's details on its budget., external

Tory MSP Gordon Lindhurst says the Scottish economy under the SNP is "struggling to keep pace with the rest of the developed world".

Brexit is not an excuse, he argues, pointing to Scottish growth not matching the rest of the UK for much of a decade.

Responding to the suggestion that his party's proposals would see £500m of cuts, Mr Lindhurst argues the Conservatives are focused on growing the economy and improving the tax take that way.

He says the Scottish government is not targeting the rich with its proposals, but hard-working families that already struggle to make ends meet.

Image source, bbc

Ms Baillie says the cabinet secretary is storing up problems for the country and accuses him of back of the envelope accountancy.

The Labour MSP says salary rises are not one off for one year only, they need to be paid for every year hereafter.

She calls on the cabinet secretary to commit for the money for the public sector pay rise to be put in place for more than just next year.

The Labour MSP says the first minster used to call for a 50p top rate of income tax but "when she has the power to do so she runs a million miles in the opposite direction".

In January Scottish Labour put forward budget proposals to raise and spend an extra £960m with radical changes to taxation.

Labour's proposals would alter the system even further than the Scottish government proposals , with higher taxes and spending.

Image source, bbc

Image source, bbc

Leader Richard Leonard said "radical" use of Holyrood's tax powers could "end the failed experiment of austerity".

However, Mr Mackay said the "fantasy figures" were "riddled with blunders" and would actually raise far less money than Labour claim, while the Scottish Conservatives accused both parties of "hammering" taxpayers.

Read more here.

Image source, Getty images

Councils have asked the Scottish government for more cash to pay for public sector pay rises.

Ministers announced an end to the public workers' pay cap as part of their 2018/19 tax and spending plans.

The budget deal with the Scottish Greens means pay rises will now apply to 75% of public sector staff.

The Greens' deal also won an additional £170 million for councils, but umbrella group Cosla said pay remains a major issue for local authorities.

• Council workers call for 6.5% pay rise
• Scots budget: what does it mean for me?
• Scotland to end public sector pay cap

Closing for Scottish Labour, Jackie Baillie notes from the outset that the rate resolution today and the Budget Bill tomorrow will pass because of the support of the Greens.

She notes the Scottish government's revenue budget has been cut by 0.8% while the capital budget has seen an increase - "a mixed bag", she says.

Ms Baillie notes the majority of the Scottish public support paying extra taxes to improve public services.

However, the Labour MSP warns that the proposals are not enough and the Scottish government has left itself open to criticism when improvements to public services are not seen.

Underspend in the budget is highlighted and Jackie Baillie asks the cabinet secretary which line of spending the underspend is from.

She urges the government to find "all the money" from underspend ahead of next year's budget.

Image source, bbc

MSPs will shortly sign off changes to Scotland's income tax system which will set up new rates and bands.

Finance Secretary Derek Mackay has put forward plans for a new five-band system which will cut bills for lower earners but raise them for others.

The proposals are expected to pass in a vote at 5pm, as part of the budget deal the SNP struck with the Greens.

Mr Mackay's spending plans will then be put to the Holyrood chamber on Wednesday for final approval.

The Conservatives and Labour oppose the changes, which if agreed will come into force from the start of the new financial year in April.

• Rates of change: Holyrood and income tax

SNP MSP Willie Coffey says the Scottish government can support the NHS, keep tuition and prescriptions free, and provide childcare thanks to its ability to raise money over and above the block grant.

He argues the tax proposals are "fair, balanced and proportionate".