Mr Corry says councils are having to use their reserves to fund services, which cannot continue.

Communities Secretary Angela Constance says local authorities need to consider how they deal with the challenges ahead.

Ms Constance says the government and Cosla agree how business is done will have to be different and reform of local government must take place.

Scottish Conservative MSP Maurice Corry asks what assessment the government has made of the Audit Scotland report, Local government in Scotland: Financial overview 2015/16, external.  

Social Security Minister Jeanne Freeman says the government is committed to reducing stigma.

Mr Balfour says only 43.8 % of individuals with disabilities are employed and the number has fallen in recent years.

The Conservative MSP asks for confirmation of what the Scottish government will do to ensure employers treat those with a disability equally.

Ms Freeman highlights the Disability Delivery Plan which, she says, aims to reduce the employment gap by one half.

Scottish Conservative MSP Jeremy Balfour asks what action the government will take to support a national campaign to raise awareness of disability and reduce stigma, in light of the recent report by Disability Agenda Scotland.  , external

First up in the chamber this afternoon we have portfolio questions and it's the turn of communities, social security and social security ministers to take questions from MSPs.

This will be followed by a Scottish government led debate on sea fisheries and end of year negotiations.

After decision time, SNP MSP George Adam will lead this evening's members' debate on Paisley's bid to become City of Culture 2021. 

That ends a rigorous evidence session with  Economy Secretary Keith Brown.

Scottish Greens MSP Ross Greer asks what implications the government thinks there will be by removing the Scottish Funding Council (SFC) board.

Paul Smart from the Scottish government says SFC has a funding group which will continue to be the case.

Mr Greer asks is a minister chairing the board can be ruled out now.

Image source, bbc

Keith Brown says it is important that the governance review is allowed to take place. 

Mr Greer asks if we are jeapordizing the opportunity for universities to get funding.

Mr Brown says there is a need for increased alignment and it is not the government's intention to see a reduction in funding for any of the institutions as a result. 

Scottish Labour MSP Johann Lamont asks if the minister can clarify what HIE will not be able to do, when the new board is introduced, as he has already explained what it will still do.

Ms Lamount asks why HIE requires a board above it. 

The minister says he believes an overarching board is required because the joined up working has not been there. 

Mr Brown says the new board will be about more alignment between the agencies.

Ms Lamont says aligning is different to overruling which is the power the new board will have. 

SNP MSP Fulton Macgregor asks if if the minister has any idea of who is likely to chair the board.

Economy Secretary Keith Brown says he can't recall in any submission that anyone has recommended who could chair it, although there has been a running commentary on it.

The minister says the agencies were not included in phase one because the government wanted to hear from those using the system rather than the system itself. 

The minister says the nature of the single board is very likely to require legislation, but what type of legislation is unclear at this time.

Conservative MSP Ross Thomson says the former chair of HIE said the Scottish government has cut HIE's budget and turned it into a Scottish government delivery mechanism and said this is centralisation gone riot.

Mr Brown says the Conservative budget are responsible for budget cuts.

The minister says the government have said it guarantees the continuance of HIE and its governance has not been finalised.

Jamie McIvor
BBC Scotland education correspondent

Universities are warning that current funding levels are "unsustainable".

They claim that if their funding does not improve courses could be cut, jobs could go and research work might not happen.

Image source, Thinkstock

They argue public funding from the Scottish Funding Council has fallen by 12% in real terms since 2010.

Universities get their money from a wide range of sources.

The Scottish government, which finances the Scottish Funding Council, argues it has invested £4bn in higher education over the past few years and is investing more than £1bn this year. Political critics claim it is underfunding universities.

The warning came in evidence to MSPs on Holyrood's public audit committee on Thursday.

Image source, bbc

The cabinet secretary says the government is not looking to reform universities, that is not part of the review.

The governance structures are being looked at and the review will inform them.

Mr Johnson says he is puzzled that the minister thinks reforming the governance of universities is not reform.

He asks what is broken with university governance at the moment.

Mr Brown again says the government is not reforming universities.

Scottish Labour MSP Daniel Johnson say he is confused because the Deputy First Minister John Swinney said the current boards will go.

Economy Secretary Keith Brown says the boards will go and will be consumed by the new governance.

Mr Brown says it has been made clear to Highlands and Islands, Skills Development Scotland and Universities Scotland boards that they will go and be consumed be a new single board.