The paper argues that from a new public governance and service management perspective, local public services are best conceptualised as service systems in which users co-produce and co-design; this differentiates public from private services, which have lower of trust and shared values resulting in a goods-dominant logic and are an alternative to the new public management viewpoint. Referencing new case studies from Finland and Scotland, we further argue that for local public services? co-production as an action-learning environment supports and encourages co-design: this makes local public services a special case of codesign. Analysing the two cases of co-design, we argue that since public services are subject to public scrutiny, and since design is a social activity, there exists a wider democratic footprint. Finally, we argue that co-design of local public services is best analysed from the perspective of action learning, for which we suggest an analytical framework.