Finance Secretary Derek Mackay gives evidence to the finance committee as it scrutinises the budget 2019-20
A ministerial statement responds to the Brexit vote at Westminster
Environment and rural economy ministers face portfolio questions
Scottish Labour leads a debate on Scotland's economy
SNP MSP Gail Ross uses a member's debate to highlight the Highland youth survey
Image source, PA/Getty Images/ BBCThe Scottish government will give its response to last night's meaningful vote on Brexit at Wesmtinster, entitled 'Protecting Scotland's Interests', from 1.30pm.
Image source, UK PARLIAMENT/MARK DUFFYheresa May's government faces a vote of no confidence later after MPs rejected the PM's Brexit deal.
Labour launched the bid to trigger a general election after the deal setting out the terms of Britain's exit from the EU was rejected by 230 votes.
However, one senior party figure has suggested it is unlikely to succeed, with Northern Ireland's DUP and Tory rebels saying they will back the PM.
The confidence vote is expected to be held at about 19:00 GMT.
Mrs May has told MPs she will return to the Commons with an alternative plan next week, provided she survives the confidence vote.
"The House has spoken and this government will listen," she said on Tuesday night, offering cross-party talks to determine a way forward.
Image source, AFPNicola Sturgeon is heading to London for Brexit talks with her SNP MPs
First Minister Nicola Sturgeon is in London for Brexit talks as MPs prepare for a confidence vote on Theresa May's government.
MPs overwhelmingly rejected Mrs May's Brexit plan on Monday, leading Labour to call a confidence vote in the government, seeking a general election.
Ms Sturgeon wants a new referendum on Brexit so the UK can stay in the EU.
But she also said it was "increasingly clear" that "Scotland's interests will only be protected with independence".
Mrs May has offered cross-party talks on a way forward if her government survives Wednesday's vote, saying that "the House has spoken and this government will listen".
Image source, bbcThe Finance and Constitution Committee recommends that the Land and Buildings Transaction Tax (Tax Rates and Tax Bands Etc) (Scotland) Amendment Order 2018 be approved.
Tory MSPs abastained, but the rest of the committee voted to approve.
Tory MSP Murdo Fraser begins by raising the issue of an increase in the additional dwelling supplement.
Mr Fraser warns there has been a contraction in the market as a result and higher rents.
He asks why the Scottish government increased the rate from 3% to 4%.
Public Finance Minister Kate Forbes explains the policy objective is to support first time buyers.
Ms Forbes points out the increase only applies to new properties.
Image source, bbcPublic Finance Minister Kate Forbes
MSPs are now taking evidence on the Land and Buildings Transaction Tax (Tax Rates and Tax Bands Etc) (Scotland) Amendment Order 2018 from:
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Image source, SPICeAccording to SPICe..., external
"The total allocation to local government in the 2019-20 Budget is £10,779.9 million... This represents a 2.5% increase in cash terms, or a 0.7% increase in real terms.
"Once Revenue funding within other portfolios (but still from the Scottish Government to local authorities) is included, the total is £11,071.2 million, a cash increase of 3.8% (£405.1 million), or 2% (£210.5 million) in real terms. This £210 million real terms figure was used by the Cabinet Secretary as the headline Local Government figure in his Budget speech.
"However, when looking specifically at the non-ringfenced Revenue funding available for councils to deliver services this falls by 1.7% (-£157.2 million) in cash terms, or 3.4% (-£319.1 million) in real terms between 2018-19 and 2019-20."
Image source, bbcLabour MSP Neil Bibby
Labour MSP Neil Bibby pivots to local government funding, asking if councils are getting a fair settlement this year.
Mr Mackay insists both resource and capital settlements show real terms increases, totalling £210m.
Mr Bibby points out that if you exclude money for childcare and social care, they face a cut.
The cabinet secretary says he believes both childcare and social care are core to local government.
It appears to be one rule for you and one for councils, says Mr Bibby, who points out Mr Mackay claims Scotland's budget has been cut when NHS spending is removed from the equation.
Labour MSP Neil Bibby asks money for teachers' pay.
Mr Mackay says live negotiations are ongoing and it would therefore be inappropriate to set out any detail given there has not yet been agreement.
The Scottish government is trying to be as constructive and helpful as possible, he tells the committee.
Image source, PAA second teachers' union is warning it could hold a strike ballot over pay.
Both the Scottish Secondary Teachers' Association (SSTA) and the EIS are calling for a 10% pay rise.
The EIS announced plans for a strike ballot on Saturday and now the SSTA's salaries committee is recommending a similar ballot if councils reject a proposed improved offer next week.
The Scottish government says it is prepared to fund an improved pay offer but this is short of the 10% rise.
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Mr Tomkins turns discussion to business rates, asking about concerns that the Scottish government's policy places pressure on town centres.
Mr Mackay says businesses are supportive of the government's non-domestic rates as a whole.
He points to some businesses not having to pay any rates at all and also lowering of poundage.
Asked about difficulties in the hospitality sector around assessment, Mr Mackay says it isn't for government to direct independent assessors for business rates.
Image source, bbcMr Mackay insists in his tax decisions, the Scottish government has reinstated the "short changing" of £55m to the health budget.
SNP MSP Emma Harper says the current budget is approved there will be a package of funding transferred to local government to help implement Frank's Law.
The new legislation will extend free personal care to under-65s with degenerative conditions.
The cabinet secretary replies he was able to meet local government's request for more cash for social care.
If the budget is not passed, it would create a great deal of uncertainty says the finance secretary.
We must work hard to compromise in order to release funding for our public services, particularly in light of Brexit he adds.
Mr Mackay notes that the SNP voted for executive budgets when they were in opposition because it was the "responsible thing to do", given the damage not doing so would cause.
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Image source, bbcTory MSP Murdo Fraser
Tory MSP Murdo Fraser says over the last couple of years the cabinet secretary has miraculously discovered more money to garner a deal with the Greens.
How much money will he find this year?
"I have fully allocated the resources at my disposal," replies Mr Mackay.
However he insists; "My door is open to opposition parties."
Mr Fraser says it would help opposition parties to know what additional sums are "lying around".
What is the value of the economic stimulus and how will we judge its success, asks Mr Bibby.
The budget as a whole helps provide stability and stimulus, argues Mr Mackay.
He points to investment in infrastructure, exports and other growth areas, the proposed town centre fund and a host of other elements of the budget.
The difference between the budgets for 2018-19 and 2019-20 is £2bn in spending, he adds.
Labour MSP Neil Bibby asks for evidence that there can be confidence Scottish growth figures will be higher than the rest of the UK.
We've had five consecutive quarters of GDP growth and the Scotland has had higher growth than rUK for the last two quarters, replies the minister.
"The forecasts, whilst being subdued, have been surpassed so far," Mr Mackay elucidates.
SNP MSP Angela Constance wonders how investment can end up increasing tax receipts.
Mr Mackay uses infrastructure investment as an example, saying government money can stimulate the economy and create jobs in construction.
Investment can have a multiplier effect in the short, medium and long term he adds.
Scottish Green co-convener Patrick Harvie asks what the government's assessment is of the revenue in the budget compared to UK policy.
Mr Mackay replies: "£500m."
Mr Harvie asks: "Where is it?"
Mr Mackay says in terms of the extra resources coming from the divergence in income tax, it's invested in the budget.
Image source, bbcThe finance secretary goes on to say: "Where is the money from the tax divergence? It's in the budget as proposed."
Mr Harvie presses the minister to identify specific budgets that have benefited.
All the areas of government, including local government, replies Mr Mackay.