Scottish minister Iain Gray has launched a joint social work and health board to integrate all community care services in Perth and Kinross.

Perth and Kinross Assessment and Care Team (Pact) has been given £1 million by the Scottish executive through the Invest to Save initiative, and was established to totally integrate all social work and health community care services.

The new board links Perth and Kinross Council, Tayside Health Board and Tayside Primary Care Trust in the direct management of services and sharing budgets. There will be a single administrative and information system shared by all staff.

Gray, who is deputy minister for community care, said: "The Scottish executive views this as a crucial scheme, which could determine the future of working for health and social care services throughout Scotland."

The joint board is being funded by the three partner agencies. While having some autonomy it will perform only those functions that current legislation allows.

Legal accountability will remain with the parent bodies while duties will be devolved to Pact. The main areas of service covered by Pact will include services to adults and older people, elements of housing and planning, mental health, learning difficulties, and community health care.

Harry Robertson, chief executive of Perth and Kinross Council, said: "This innovative scheme has seen all three organisations put aside narrow service and departmental interests to meet the genuine needs of the client."