The pre-election budget comes later than usual as a result of the timing of the UK government’s Autumn statement in November and the time required to assess its implications for Scotland’s public finances.

The additional £820 million in Barnett consequentials – including £510 million in resource funding and £310 million for capital funding – is “meaningful” but small in the context of a £60 billion budget, according to MHA partner Alan Stewart.

“Independent analysis suggests that underlying spending pressures have continued to exceed recurring revenues in recent years, placing constraints on future fiscal flexibility,” Mr Stewart said.

“This adds to the difficulties faced by the Finance Secretary who has to balance the budget every year although use can be made of the Scottish Government’s borrowing powers and non-recurring funding sources, such as reserves or one-off revenues.

“The Scottish Government has consistently highlighted child poverty, climate commitments, economic growth, and the sustainability of public services as key areas of focus.

“The UK Government’s decision to remove the two-child cap on benefits will also free up funding that had previously been allocated by the Scottish Government to mitigate the policy, creating some additional headroom ahead of the Budget.”

He added: “From a personal taxation perspective, confirmation has been given that income tax rates and bands will not increase in the forthcoming Scottish Budget.

“However, without changes to thresholds, some taxpayers may still see higher liabilities over time as earnings increase. 

“Businesses in the retail, hospitality, and leisure industries may also be looking to see some easing of business rates to help with their operational costs.”

The Scottish Chambers of Commerce (SCC) has warned that the Budget needs to deliver a boost in business confidence.

Dr Liz Cameron OBE, director and chief executive of SCC, said: “After a tough Autumn statement and fresh pre-Budget jitters ahead of the Scottish Government’s announcements tomorrow, business confidence is at a worryingly low level.

“Our largest survey in years underlines the growing strain placed on businesses by the tax system, and a lack of meaningful policies to tackle the structural challenges facing our economy.

“In December, we urged the Scottish Government to use their Budget to boost planning capacity, prioritise skills funding, and freeze business rates.

“Since then, businesses across every sector have been hit with eye-watering rates hikes, with some warning the increases will price them out of existence this year.

“Tomorrow is a pivotal moment. The Scottish Government must act decisively to restore confidence and put Scotland’s businesses back on the front foot.”

Roz Foyer, general secretary of the Scottish Trades Union Congress (STUC), urged Ms Robison to deliver for Scotland’s workers.

“Tomorrow, the Scottish Government must do what is right and prioritise the people of Scotland not political survival,” she said.

“With the election looming large, this budget can’t sacrifice the long-term wellbeing and growth of our nation on the altar of short-term political survival.

“We must see bold decisions from the Finance Secretary on reforming tax on property and land, along with the introduction of wealth taxes, not more of the same measures designed to prioritise short-term electioneering.

“STUC research has shown that modest wealth taxes on Scotland’s richest few can benefit the many with almost £500,000,000 raised for the public coffers in the process. These are the measures the Scottish Government must prioritise if they want the support of Scotland’s workers.

“This isn’t about the next four months; if the government wishes to re-take office for the next five years, we urge them to do what is right and stand beside Scotland’s workers tomorrow, prioritising public services, job security and decent pay in their budget measures.”