Image source, bbc

Labour have also changed their position and are no longer backing Andy Wightman's call.

Sarah Boyack argues MSPs were right to back Mr Wightman's amendment on devolving control over NDRs at Stage 2 but cites the concerns raised about the loss of business rates relief for her party's U-turn.

The Labour MSP also points out the concerns raised by Cosla and their call not to support the Green MSP's proposal.

Ms Boyack tells the chamber her party will not support the devolution NDRs in this bill, but stresses support for Cosla's call for work on the fiscal framework on local government funding and taxation.

Tory MSP Murdo Fraser says we must consider the principle of localisation of rate setting.

He says there are many in his party with sympathy for this view, but it must be considered within two broader contexts:

• The Barclay review was "too restrictive", Mr Fraser says, calling for a comprehensive review of the system to ensure online businesses are not let off lightly.
• The funding of local government needs to be tied to wider discussion on powers and functions. Do they deliver policy or do they have a status themselves, he asks.

Ending national business rates at this stage is not appropriate, he argues.

Andy Wightman insists this is not what his amendment says, adding the earliest it could be done would be 2024.

Mr Fraser accepts this, but confirms his party will not back his amendment.

We do not believe this is the right time or that this bill is the right vehicle for this policy, the Tory MSP concludes.

Image source, bbc

Public Finance Minister Kate Forbes, whose amendment calls for the section of the bill amended by Andy Wightman at Stage 2 to be removed, says the Tories' position has been opposed by business and Cosla.

Ms Forbes says this is no way to set changes in motion, citing a lack of scrutiny and consultation.

The minister insists the amendments before MSPs today do not address the concerns raised.

She accuses the Tories of only being forced to think again about their "ridiculous position" by pressure from business organisations.

Mr Wightman intervenes to ask the minister to confirm the government has only agreed to look at the implications of devolving the power over the setting of rates, rather than commencing joint work on actually implementing the proposal as called for by Cosla.

The minister pledges work on the fiscal framework will be carried out at pace, looking at integrated local government funding mechanisms and taxes.

Green MSP Andy Wightman says non-domestic rates were a local tax for well over a century before being centralised by the Thatcher and Major UK governments.

The Greens believe this was a wrong move, he states, adding local authorities should set their local tax rates.

Mr Wightman explains amendment 23 allows plenty of time to transfer the powers to local authorities, adding this should not and could not happen overnight.

He says backing his amendment would be a "vote for democracy" and one which makes Scotland "a normal European country" he urges other MSPs.

My amendment also reinstates national business relief, which was removed due to a drafting error at stage 2, Mr Wightman says.

I am aware that many business groups oppose amendment 23 but much of this opposition was about the removal of relief, he says.

He goes on to highlight many of these groups also opposed the Scottish Parliament having powers to vary tax rates at all.

Local rates must not be the subject of private meetings between business elites and the cabinet secretary, the Green MSP argues.

We now move to what Andy Wightman hopes will be the highlight of the debates this afternoon.

The Green MSP saw his amendment to hand the power to set business rates from the Scottish government to local authorities pass at stage 2.

Hence, we could get 32 different business rates, some inflated to plug budget gaps, others used to undercut neighbouring areas.

It's no surprise to the St Andrew's House administration that Mr Wightman is on manoeuvres. He's a formidable operator, with a deep understanding of land law.

What seems to have surprised it was the support of Labour and Conservative committee members.

The Scottish government is very keen to overturn the amendment at the final stage of legislating.

That is now almost certainly going to be the outcome as both opposition parties have intimated they no longer back the Greens and instead now back the government.

Image source, bbc

Public Finance Minister Kate Forbes says the changes were brought in in response to demands for clarity around a change in material circumstance.

Ms Forbes says the changes better reflect the realities of a shorter re-evaluation cycle and brings Scotland into the rest of the UK.

She says if there is an economic crisis rates bills should be amended.

The minister calls on MSPs not to support these amendments.

Mr Simpson says he is disappointed the minister is not listening to to business.

27 MSPs back him but 87 do not.

Tory MSP Graham Simpson explains an amendment made to the bill by the Scottish government at Stage 2 was related to the definition of a materiel change of circumstances.

He says the Scottish Chamber of Commerce said it was "outraged" about the change, warning the bill as it stands alters appeal rights, restricts appeals due to a change in economic circumstances, but still considers physical changes to be a material change.

He warns that even with the move to three year valuations, the rates system will be less responsive to changing markets if it cannot appeal due to economic circumstances.

Mr Simpson also highlights a lack of consultation with the business community before the Stage 2 amendment was agreed to.

Image source, Getty Images

Unlike domestic homeowners, Scotland's businesses do not pay council tax. Instead, shops, warehouses, offices, pubs and hotels pay money to the Scottish government in business rates.

Every five years an independent assessment is carried out on every business property in Scotland to work out their "rateable value". This is a judgment of how much the property should cost to rent. It does not matter how much money a business makes or loses.

The Scottish government then sets an overall "poundage rate" which acts like a tax rate. The business rate bill is the rateable value multiplied by the poundage rate. Businesses can apply to reduce the bill through "relief" schemes.

Although the rate is set by the Scottish government, the money is collected by councils and is worth 22% of their revenue funding.

MSPs continue to debate Stage 3 amendments to the Non-Domestic Rates Bill, external.

There are 74 amendments in 15 groups for MSPs to consider and to follow these proceeding you will need:

• Marshalled list, external
• Groupings of amendments, external

Image source, Getty Images

Green MSP Andy Wightman saw his amendment to hand the power to set business rates from the Scottish government to local authorities pass at stage 2.

Hence, we could get 32 different business rates, some inflated to plug budget gaps, others used to undercut neighbouring areas.

It's no surprise to the St Andrew's House administration that Mr Wightman is on manoeuvres. He's a formidable operator, with a deep understanding of land law.

What seems to have surprised it was the support of Labour and Conservative committee members.

The Scottish government is very keen to overturn the amendment at the final stage of legislating.

That is now almost certainly going to be the outcome as both opposition parties have intimated they no longer back the Greens and instead now back the government.

Douglas Fraser
Scotland business & economy editor

Image source, Getty Images

The election result has put the focus on the need to think more local in a response to the places that feel like they have been left behind.

An opportunity has arisen with an amendment to the business rates bill, which would shift control of non-domestic rates from Holyrood to councils.

While the SNP administration may struggle to overturn the move, business lobby groups are mobilised on the government's side.

Click here for our Business and Economy Editor Douglas Fraser's take on the rates rammy.

Prepare for a bumper session on the Non-Domestic Rates Bill, external.

There are 74 amendments in 15 groups for MSPs to consider:

• Marshalled list, external
• Groupings of amendments, external

The most important group is 7, which would give local authorities the power to set business rates.

Green MSP Andy Wightman will seek to tidy up his stage 2 amendment, while Public Finance Minister Kate Forbes aims to remove the segment entirely to ensure government maintains control.

Labour MSP Rhoda Grant says the difference between the Scottish deficit and the UK deficit is an urgent question.

She asks what the cabinet secretary will do about it.

Mr Mackay says the big tool that would allow a change in the fiscal position would be independence, pointing to other small EU countries.

The figures are a reflection of the union, not independence, he adds.

Scottish Lib Dem leader Willie Rennie asks whether the cabinet secretary should not be embarrassed there is no openness about these figures and no debate on this issue.

Mr Mackay says in terms of transparency these figures were published proactively.

Mr Fraser says the Scottish deficit is the highest in Europe.

If Scotland was independent where would the cuts fall, he asks.

Mr Mackay says the figures published are a consequence of the current constitution, arguing an independent Scotland would have the levers of control to grow the economy.

Finance Secretary Derek Mackay says revisions to the nominal value of GDP are normal and have no impact on the economy, he says.

Mr Fraser says growth of the UK economy is more than double that of the Scottish economy.

Mr Mackay points out it was ludicrous for Mr Fraser to have accused him of hiding of GDP statistics, citing the Fraser of Allander Institute's view., external

The minister insists there are some quarters where Scotland's economy will have grown more than that of the UK.

Tory MSP Murdo Fraser asks about the impact of the down revision of estimate GDP from £180 to £175bn on the economy and public finances.

Image source, PA Media

The Scottish government published its GDP quarterly accounts, external last week, which found:

• Growth of 0.3% in the third quarter of 2019, unrevised from the first estimate.
• Growth of 0.6% from the same quarter in 2018, revised down from the first estimate of 0.7%. UK growth over the year was 1.3%.
• In 2018, Scotland's GDP grew 1.5% compared to 2017. The UK growth rate was 1.3%.

Green MSP Alison Johnstone suggests the NRAC formula used to calculate what health boards receive has led to not enough funding being given, putting extra pressure on NHS Lothian.

The health secretary says the health board's budget has risen by 31% above inflation, adding it received the highest uplift of any board.

NHS Lothian faces financial challenges, she accepts, but it will have to meet these challenges.

She suggests the NHS would receive more funding if the Scottish budget had not been cut by the UK government.

Image source, bbc

Scottish Labour MSP Monica Lennon says "Brian Houston's resignation letter paints a pretty bleak picture", as it says the behaviour of the Scottish government has been counter to a value-based culture.

Ms Lennon asks if the cabinet secretary can advise what is being done to look into Brian Houston's claims.

The health secretary replies Mr Houston is entitled to his views but they are not views she shares.

Ms Freeman adds she is not prepared to rehearse in public the conversations she has with chairs of health boards, as they must be frank and open.