Autumn is upon us, and for our elected representatives that has meant a return to Holyrood as parliament reconvenes. As the Scottish Government settles into a new term, it’s fitting to reflect on the major challenges it faces - and how it might tackle them. 

Every government must strive to provide services that deliver the best outcomes for all. Deloitte’s last State of the State survey found the top area the Scottish public wanted the Government to address was the cost of living crisis; it also saw Scotland stand out as the only UK nation whose citizens were willing to pay higher taxes in return for higher public spending. 

It's perhaps unsurprising, then, that public spending per person in Scotland over the past year was around 13% higher than the UK average, according to the latest GERS (Government Expenditure and Revenue Scotland) report. GERS also estimated an annual increase of around 10% in Scotland’s total public spending, with the Government attributing much of that increase to the introduction of cost of living support including for food, energy and water bills. 

Despite the Government’s efforts to combat the worst impacts of the cost of living crisis, a new report from the David Hume Institute shows many are engaging in extreme cost-saving behaviours, with "potentially disastrous implications for public health" - a system that’s already enormously strained. 

The State of the State found the public’s second-highest concern was NHS waiting lists. Despite Scotland having the UK's highest level of health expenditure per head, waits are lengthy. Innovative thinking will be an essential step along the journey to resolving this and transforming our public services. 

The availability of affordable housing also featured in the top five areas Scots wanted the government to address. This has only become more urgent, as the Government comes under pressure to address shortages in the rental market and latest statistics show homelessness has risen above pre-pandemic levels. 

The final report of the Homelessness Prevention Task & Finish Group - which recommends that a range of public bodies adopt specific homelessness prevention duties - emphasises a need for "cross-sector culture change".  Crucially, it says this can only work if it’s comprehensively resourced. Similarly, James Withers’ recent Independent Review of the Skills Delivery Landscape proposes inherent change to how Scotland’s education provision is planned and funded. 

These reports’ recommendations represent the kind of thorough systemic change that’s needed to tackle such major challenges – the kind of change that can only be delivered through unflinching, ambitious leadership. 

The Scottish Government has already demonstrated ownership in declaring tackling child poverty its "national mission" and a singular priority. Perhaps this signals the start of a new era of devolution, whereby the Scottish Government carves its own path to finding sustainable solutions to our most pressing challenges. Only time will tell whether the provisions outlined in the recent Programme for Government - including weighty commitments on child poverty, health, housing and education - will make that vision a reality. 

Ultimately, if we are to achieve the truly inclusive growth we all want to see in Scotland, the Government must be alive to the need for systemic change, and be bold in embracing it. 

Lesley Smillie is Partner, Public Sector, Deloitte in Scotland