It’s been quite a couple of weeks in politics. No one could accuse the UK devolved government and the local elections in England of being less than interesting.

Across the UK, the political map shifted massively. Labour fell into single figures in the Welsh Senedd. In England, both Labour and the Conservatives suffered heavy losses in the council elections. Labour saw its worst local election result on record, while the Conservatives also experienced a huge drop in representation across England. The scale of the losses for both major parties underlined how fragmented the political landscape has become. Meanwhile, there was a dramatic surge for Reform UK (gaining over 1,400 councillors) and significant gains for the Greens.

“Jenny Gilruth’s promotion signals Swinney’s intention to bring political authority to the centre of fiscal decision‑making” 

In Scotland, the SNP won a historic fifth term, becoming the largest party, again, with 58 seats, but fell short of the 65 seats needed to command an overall majority. John Swinney was then voted in as Scotland’s First Minister (FM). 

Labour tied with Reform, which came from having one MSP, who defected from the Conservatives, to securing 17 seats in Holyrood. There’s really not that much separating them from the rest of the pack, with the Greens winning 15 seats, the Conservatives 12 and the Lib Dems with 10, doubling their numbers from the last Parliament.

A new First Minister and a new cabinet? 

Not exactly. Swinney is once again Scotland’s First Minister, but this is the first time he has won an election as SNP leader. Since then, Bute House in Edinburgh, the official residence of the FM, has been busy. The new cabinet is smaller, with eight cabinet secretaries plus Swinney, down from 12, but it combines familiar faces with strategic reshuffles and only two new faces.

Possibly a surprise was the promotion of Jenny Gilruth, the former Education Secretary, to not only Deputy First Minister but also Finance Secretary, in charge of Scotland’s £68bn budget and a huge deficit to contend with. Her promotion signals Swinney’s intention to bring political authority to the centre of fiscal decision‑making.

Many had tipped Ivan McKee for that job, but instead he enters the cabinet for the first time in a beefed-up role of Cabinet Secretary for Public Service Reform. McKee has long been vocal about eliminating waste and improving efficiency. He previously identified over £1bn in cuts when he held this role as a junior minister. His promotion perhaps indicates just how seriously Swinney is taking the fiscal black hole of almost £5bn and that he sees reform, not just revenue, as essential to closing the fiscal gap.

The other new face in the cabinet is Stephen Flynn, former MP for Aberdeen North and leader of the SNP Westminster group, who was handed the reins of Economy, Tourism and Transport. A brief full of challenges, from securing more investment, to infrastructure and improving business confidence. Flynn brings political and media savvy to the role, but he has no ministerial experience and only entered Holyrood for the first time a few weeks ago.

Beyond the cabinet, there are a couple of new faces entering government, including the Minister for Europe, External Affairs & Energy, Stephen Gethins, an MP until he won his Holyrood seat in May and a former adviser to Alex Salmond. Another new face in the chamber is Hannah Mary Goodlad, who took Shetland from the Lib Dems – no mean feat! This is a key role for a newbie and she will work closely with both Gilruth and McKee.

A more familiar face is the Minister for Business and Fair Work, Tom Arthur. He’s held a version of this post before and is considered business-friendly. Also returning is the Minister for Innovation, Technology and Tertiary Education, Ben Macpherson, the former skills minister. He will have his hands full sorting out further and higher education.

A Parliament unlike any before it 

The new Parliament itself represents a profound shift with almost half the MSPs being newly elected, the highest turnover since devolution. Over 80% have a university education, making this one of the most academically qualified cohorts ever. Their CVs are more diverse than in previous sessions, with MSPs coming from a variety of backgrounds.

Eighteen have previously been elected to Westminster, two have been MEPs and 53 have been elected to a local council. Around a fifth have limited work experience outside politics, with 45 having worked as political staffers. Six are former schoolteachers and 11 have worked in a range of different capacities in the further or higher education sectors. Twelve MSPs have worked in health or care, from junior doctors to nurses, and social workers to pharmacists. Only 14 have been entrepreneurs running businesses that have gone on to employ a wider staff base. The chamber is also younger, with a quarter aged 40 or under.

All of this matters. A Parliament with this level of renewal and generational change will inevitably bring new expectations, new working styles and new pressures, particularly for a minority government, which will need to collaborate and compromise to get legislation through. There is also a steep learning curve for many new MSPs, navigating complex parliamentary, economic and regulatory issues.

A fresh start? 

That depends on what comes next. Swinney inherits a Parliament that is more fragmented and more diverse than the one before it. His smaller, more tightly focused cabinet now faces Scotland’s toughest long‑term challenges: sluggish growth, a significant fiscal gap, under‑pressure public services and the need to rebuild trust with business.

Whether this moment becomes a genuine reset or simply more of the same will hinge on the government’s ability to work across parties and engage constructively with industry, and the education and skills system to set a clear, credible economic direction.

What is clear is that this is not just another Parliament. With almost half the chamber newly elected, a younger and more professionally diverse intake and a political landscape transformed by voter volatility, Holyrood has been reshaped by renewal, uncertainty and opportunity. And business will be watching closely.

ICAS is already engaging with what comes next. We hosted a pre‑election hustings in April with candidates from all six main parties, three of whom are now MSPs, and a ‘meet the new MSPs’ session in May, welcoming four of Holyrood’s fresh new intake. Our team are now meeting parliamentarians across the post‑election programme of events and receptions. Engagement plans are in motion, letters to key ministers have gone out, and we’ll continue building the constructive, influential relationships needed to shape the decisions that matter for the profession and the wider economy.

For business, the message is simple: this is a moment to engage early, stay visible and help shape the choices that will define Scotland’s economic future.

ICAS is hosting an event at the Edinburgh Finance Festival in September. Find out more here