Central and local government must jointly address the challenges of tighter public finances and increasing demand on services as Scotland weathers the economic downturn, John Swinney said today.
The Cabinet Secretary for Finance and Sustainable Growth stressed the importance of building on the productive new relationship between local and central government to deliver increased benefits for the people of Scotland.
Speaking at the Convention of Scottish Local Authorities (COSLA) conference in St Andrews, Mr Swinney said the Scottish Government had stepped back from micro-managing councils, giving them increased flexibility to respond to local issues and support their local economy through the downturn.
He said:
"More productive relationships between central and local government are delivering greater efficiency and better services. The direction of travel we set out with local government in the Concordat was right for the times. It is more so now as we face the challenges of an economic downturn and a public spending squeeze.
"The flexibility now enjoyed by local government has enabled councils to get on with the job of responding to local priorities. That flexibility is also helping councils play a vital role as key partners in the delivery of the Scottish Government's economic recovery programme.
"As we face mounting expenditure pressures and potential reductions in overall levels of public funds over the next few years, we must continue to innovate and seek opportunities to share services effectively - within and between councils, government and all parts of the public sector - to ensure we make best use of the public pound.
"There are some excellent examples of what greater innovation can achieve. eProcurement Scotland, and the new Recruitment Portal for Local Government, are both delivering more efficient use of resources and savings for the public purse.
"Such action is vital if we are to position Scotland for early and rapid recovery from the global economic downturn."