Image source, Jim Phanco

Senior politicians from three parties have backed calls for a new industrial strategy to help "save" former ship repair sites on the Clyde.

A letter to First Minister Nicola Sturgeon says the Inchgreen dry dock in Greenock and Govan Graving Docks have needlessly been allowed to decay.

Campaigners want an action plan to stop marine industry sites being lost to housing or retail development.

The owners of both sites have insisted they have plans for their future.

Read more.

SNP MSP Kenneth Gibson asks about plans to develop an industrial strategy for the River Clyde and its adjacent communities.

Image source, PA/Scottish Parliament

After general questions, we will bring you extensive coverage of first minister's questions complete with reaction on social media.

Then there will be a member's debate led by SNP MSP Fulton Macgregor on paternity leave.

Image source, RICHARD WEBB

After lunch Health Secretary Jeane Freeman will give a statement on the children's ward at St John's Hospital.

The rest of the afternoon will be dominated by a debate on support for veterans and the armed forces community in Scotland.

Image source, bbc

Image source, bbc

Tory MSP Murdo Fraser says the Scottish government changed a number of tax bands and rates.

Mr Fraser argues there were consequences in relation to access to allowances, including the married couples allowance.

He asks if all the issues have been resolved.

Ms Truss answers: "I belive they have."

Mr Crawford draws the meeting to a close.

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Scotland's new system of income tax rates and bands came into force in April.

The changes, which were signed off by MSPs alongside the Scottish government budget in February, sees many pay less tax, but some pay more.

Finance Secretary Derek Mackay said the new system is more progressive and will raise extra funding for local services.

However the Conservatives say the move will hit growth, while Labour claim the changes do not go far enough to make a real difference.

Read more.

Will the demographic impacts be looked at as part of the review, asks convener Bruce Crawford, given the differences in working age population.

Ms Truss says the fiscal framework protects against population decrease risks.

The Scottish government does have levers to influence the demographics of Scotland, she insists.

We need to see outturns more clearly because we consider what will be discussed on the review, she argues.

Image source, BBC Newsbeat

SNP MSP Angela Constance asks how both governments will agree the independent process of the review of the fiscal framework, which must be done by the end of 2021.

"Winter is coming," warns Ms Constance and warns against "guddling about with the process late in the day".

Ms Truss replies: "I take those comments on board."

Green MSP Patrick Harvie says public statements from the joint exchequer are fairly minimal.

The chief secretary to the Treasury says she is happy to work with the committee on further information that can be put out there.

"I'm all for making it more clear," she says.

Mr Harvie insists there ought to be early discussions on what the 2021 review will look like, rather than working behind closed doors like the Smith commission.

"Thank you, I hear what you say," responds Ms Truss.

Tory MSP Murdo Fraser asks if the Treasury had suggested possible work-arounds for the APD issue.

Ms Truss says: "Ultimately it is a Scottish government responsibility."

Ms Whyte confirms the Treasury and HMRC are helping to develop options.

Green MSP Patrick Harvie suggests "the Scottish government just isn't that keen to implement the policy" because it will make the budget process more difficult.

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Labour MSP Neil Bibby says devolution of Air Passenger Duty has been delayed, due to the lack of an exemption for Highlands and Islands passengers.

Mr Bibby asks: "When will APD be devolved?"

The chief secretary of the Treasury accepts the Highlands and Islands exemption is the key to the delay, and adds the issue is the potential for the exemption not to meet state aid requirements

Ms Truss insists post-Brexit there will be a robust state aid system.

Mr Bibby asks if the Scottish government have approached the UK government to speak to the EU on this issue and is told it has not.

Labour MSP James Kelly pivots to the assignment of VAT and asks for detail on the methodology of the forthcoming VAT forecast.

Ms Truss replies the Treasury has been working with the Scottish government on the methodology.

The chief secretary of the Treasury insists the forthcoming VAT forecast methodology is "very robust" and it is used extensively around the world.

It is a model and does not capture each individual transaction, she adds.

SNP MSP Willie Coffey asks if there is a possibility of moving towards looking at individual receipts.

This would be an incredible burden on business, the chief secretary responds.

Scotland's current fiscal framework was agreed back in 2016 alongside the latest Scotland Act, which itself was a reflection of the Smith commission.

Here is what BBC Scotland's Andrew Black had to say back then...

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Let's talk about Scotland's new fiscal framework.

Okay, okay but before you nod off, it is worth pointing out this is a vital issue which goes to the heart of new powers for Scotland.

Most of Scotland's £30bn annual budget was funded by the UK Treasury - known as the block grant - and the amount of cash which goes into the pot is worked out under the Barnett Formula.

Once Holyrood gets more power to raise its own tax money, the amount of Barnett cash which comes north of the border will be cut.

Year One of these powers is straightforward enough - if you get £10bn worth of cash-raising powers, £10bn is then deducted from the block grant.

But things start getting complicated in future years, where tax policy in Scotland and the rest of the UK could begin to look very different.

Read more.

Convener Bruce Crawford raises the implications of forecast error, noting there has already been a £389m impact on the Scottish budget.

In normal circumstances we are up against buffers in terms of flexibility, he says.

Liz Truss accepts there were issues with initial forecasts, but adds the purpose of the fiscal framework is the Scottish government taking more of the revenue risk.

This may mean having to alter spending decisions or tax decisions, she says.

Ms Truss insists the buffer is designed to address any timing issues.

Ms Whyte explains that reconciliation cannot take place until the outturn is published and forecasts could continue to change until then.

Kamal Ahmed
Economics editor

Image source, Getty Images

The Governor of the Bank of England has always been clear about two things.

That the present Brexit process has had negative effects on the broader economy and on people's incomes.

And that a Brexit deal where there is no formal agreement between Britain and the European Union would make those effects worse.

As Mark Carney said to me in an interview earlier this week to mark the 10th anniversary of the financial crisis, Brexit is one of the Big Four risks the Bank is facing.

Read more.

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Liz Truss explains HMRC share all the data they have with the Scottish government.

The chief secretary to the Treasury says there is a lag in the system before the income tax figures catch up.

SNP MSP Tom Arthur raises concerns about job losses if there is a no-deal Brexit and he asks if the fiscal framework is flexible enough to cope with this.

Ms Truss insists: "We are confident we can secure a deal."

She goes on to say this deal will ensure frictionless trading and adds there is a £300m buffer to deal with timing issues.

There are specific provision for Scotland dealing with an economic shock and if the shock is UK wide there will be provisions within the block grant adjustments.

Ms Truss explains she feels the full mechanics of the fiscal framework are not yet in place, for example VAT, and adds "these are early days".

"We need to let it all bed down to have a proper view of the operation before the review takes place."