The Scottish Parliament's Finance Committee has published its report on the Scottish Government's Draft Budget, calling on the Government to work with the Committee to review the presentation of information in the budget.

The committee, which is responsible for the overall scrutiny of the budget, also calls on the government to provide full details on what Single Outcome Agreements in local government are likely to cover and the reporting and review process that will be put in place.

The committee adds that the target of 2 per cent target for cash-releasing efficiency savings is challenging, and that it would be looking for robust baseline information.

The committee's report also called on the Cabinet Secretary for Finance to consider proposals to make additional funding available for increased levels of police recruitment and the implementation of business rates reductions.

Committee convener, Andrew Welsh MSP said: “This UK Spending Review has given us the lowest percentage growth rate since the Scottish Parliament was established. We are also dealing with a new government, a new budget and a new relationship with local government. It is against this backdrop that the Finance Committee has been scrutinising the Scottish Government's spending proposals.

“Concerns have been raised about the information available to committees and about the consequences of the Concordat with local authorities. The Committee recognises these concerns and also recognises that any new system needs time to bed down and so we intend to work with the Scottish Government to make improvements to the information.

“We also recognise that there are concerns about the reduction in ring-fencing and we believe that the nature and operation of Single Outcome Agreements between central and local government are crucial. So we have made a number of recommendations to ensure the proper tracking and monitoring of spending in this new landscape.”

Reacting to the committee’s report, Labour's Finance spokesperson Iain Gray said: "The right-wing alliance between the SNP and the Tories to vote down amendments designed to safeguard vulnerable people and invest in Scotland's future says much about the attitude of both parties. The truth is the Tories and the SNP don't care about increasing modern apprenticeships and expanded vocational education in schools for young Scots, nursery places for vulnerable two-year-olds, additional support for children with special needs and the renewal of our town centres.

"We fully expected the SNP to reject the measures proposed by Labour to protect the poor, the weak and the dispossessed but it just shows how uncaring this party has become. Many people who voted Nationalist in May will be horrified to see them turn their backs on vulnerable groups and opportunity for Scotland's young people.”

Derek Brownlee, the Conservative Shadow Cabinet Secretary for Finance & Sustainable Growth, said: “Scottish Conservatives made clear before the Budget was published that we would scrutinise the Budget in detail, and, if necessary, suggest amendments to improve it. We have done just that. I am pleased that the Finance Committee has backed our calls on business rate cuts for small businesses, and increased police numbers.

“We have deliberately given the Government maximum flexibility to find the resources for both proposals in order to give the best chance of our policy objectives being achieved. If the Government wants suggestions on how both proposals can be funded, we will gladly supply them. It is now up to the Government to decide how it responds to these proposals.

“As we said before the Budget was published, we will not take a final decision on how we will vote on the Budget until we know what we are voting on. We will know that once it is clear whether the Government intends to amend the Budget, and if so, in what way.”

Liberal Democrat Shadow Finance Secretary Tavish Scott MSP said: “This report confirms what Liberal Democrats have been saying all along – this is the most unclear budget since 1999. It lacks detail and transparency. Budget lines have been renamed, merged and dropped without explanation. Committee after committee have criticised the government for that fact. There is an urgent need to reform the budget process so this does not happen again.

“This is a budget of broken promises from the SNP. Their problem is that their sums did not add up before the election and they do not add up now. The SNP overpromised in May. That’s why they are now backtracking and breaking promise after promise. Students won’t have their debt written off, there won’t be 1,000 extra police, and class sizes won’t be cut to 18.

“The SNP say that they can afford populist policies and keep vital public services running. However, there are real concerns that the choices made by the SNP will lead to cuts across Scotland. The report exposes the SNP plans for cuts to higher education, cuts to public transport investment, and cuts to recycling budgets.

“The SNP’s rhetoric on consensus has not been matched by action other than the deal that has been done with the Tories. It is now clear that Tory backing will get this nationalist budget through.”

The Stage 1 Debate on the annual Budget Bill will take place on Wednesday 23 January.