Humza Yousaf has insisted that councils will be handed “greater flexibility over their budgets” after he moved to reset the relationship between Holyrood and local authorities.

The First Minister set out the Verity House Agreement, which will draw up a new blueprint for how local councils in Scotland are funded and treated by Holyrood.

Writing exclusively in the Herald on Sunday, Mr Yousaf said that “resetting our relationship with local government was of the utmost importance to me” as he heralded a “new dawn”.

Pointing to the scale of the Verity House Agreement, the FM said it “has the potential to radically alter the way local government and the Scottish Government work together to best serve the people of Scotland”.

Read more: Humza Yousaf: Why we're putting more power into council hands

He said: “It seeks to forge a stronger partnership between local and national government, empowering local communities.”

In his column for the Herald on Sunday, the First Minister stressed there will not be a one-size-fits-all model, stressing that “something that works for a coastal town in Moray might not apply to a neighbourhood in central Glasgow or a tourist hotspot in the Borders”.

He said: “Councils have the local knowledge to ensure services meet the needs of their communities.

“And the Verity House Agreement sets out the principles we will follow to put more power into their hands, so they can put that local knowledge into practice.”

Mr Yousaf highlighted the shared aims of local and national government in Scotland, warning that “chief among these principles is that services and projects should be delivered at a local level unless agreed otherwise”.

Read more: Reduction to council ringfenced funds as Yousaf resets relationship

He added: “We will give councils greater flexibility over their budgets, so they can direct their resources to where they’re needed most.

“Ringfencing may still be necessary in some limited circumstances, but this would only be with the agreement of councils.

“And we will seek to empower councils to ensure they have what’s necessary to meet local needs.

“The Verity House Agreement is the start of the process to strengthen the relationship between local and national government.”

Read more: Councils are in trouble – can local government survive?

The SNP leader has said the agreement will be followed by a “shared programme of work”.

He said: “There will be a new fiscal framework governing how councils’ funding is allocated.

“And I will meet regularly with the Cosla president to ensure councils have what they need to serve their communities.

“The signing of the Verity House Agreement is an historical moment. It signals a new dawn in the relationship between two very important spheres of government.

“Working together, we will build a fairer, wealthier and greener Scotland.”