1. WHY SCOTLAND MUST CHANGE
A Note on Tone This opening section focuses deliberately on the scale and nature of Scotland's challenges. It strikes a more sombre tone than other parts of this report. This is intentional: a clear understanding of the pressures facing Scotland's people, services, and finances is essential groundwork for the solutions that follow. The subsequent sections of Part 2 — and the A.R.I.S.E. Blueprint in Part 1 — set out a practical, achievable and evidence-based pathway for meeting these challenges and building a positive future.
A Nation at a Crossroads
Scotland stands at a defining moment. After decades of progress in public health and social policy, we face a convergence of challenges that demand transformational thinking. This is not a story of inevitable decline — but neither is it a story where transformation will be quick or simple. In this Section we set out why Scotland must change, and why this change is urgent; it is followed by more optimistic sections showing how change can succeed, and how it may be funded from existing resources. The leaders reading this report have repeatedly demonstrated remarkable capacity for innovation. From the rapid transformation during COVID-19 to pioneering approaches to prevention in places like Clackmannanshire, Dundee, Glasgow, Lanarkshire, and the Lothians (with apologies to the many we have missed), Scotland's public service executives possess the strategic vision and operational expertise needed for the changes ahead. Yet the scale of change required will test this capacity to its limits. The question is not whether Scotland has the capability to transform — it is whether we can sustain the political will, resource allocation, and cultural change necessary for comprehensive success over the long term.
The Foundation for Change
Policy Alignment Creates Unprecedented Opportunity
Scotland's 2025 Population Health Framework (Scottish Government, 2025a) commits to "shift from reactive spending to preventative investment" and "developing new resource allocation approaches that support prevention." This aligns with the 2025 Public Sector Reform Strategy's call (Scottish Government, 2025b) for moving from reactive to preventative spending, the Health and Social Care Service Renewal Framework's acknowledgment that system pressures cannot be resolved without upstream prevention, and the United Nations Convention on the Rights of the Child (UNCRC) incorporation (Scottish Parliament, 2024) which creates binding legal obligations to prioritise children's wellbeing and protection from harm. Yet the Population Health Framework acknowledges the scale of challenge, noting "financial pressures across the public sector" and recognising the need for "practical architecture" to turn these commitments into operational reality. This Commission's A.R.I.S.E. Blueprint provides exactly this architecture — the implementation manual Scotland's prevention agenda requires.
Scotland's Innovation Track Record
Before examining current challenges, it is crucial to recognise what Scotland's public service leaders have already achieved. The Early Years Collaborative (Scottish Government, 2012), evolving into the Children and Young People Improvement Collaborative (CYPIC) (Scottish Government, 2016), demonstrated how health, education, and local government can collaborate effectively. Local innovations documented during our inquiry include whole systems approaches to children and families, integrated family support teams, creative use of change funds to reallocate spending from reactive adult services to preventive early-years initiatives, and community-based prevention approaches to tackle adverse childhood experiences (ACEs). Other successes include the Universal Health Visiting Pathway (Public Health Scotland, 2021), increasing health visitor numbers (while they reduced in England), Family Nurse Partnership (NHS Health Scotland, 2019), and initiatives supporting Perinatal Mental Health. The rapid COVID-19 response provided further proof of Scottish leaders' innovation and adaptability. Yet fourteen years after Christie (Christie Commission, 2011), the scale of problems below suggests that creative local innovation — however impressive — is insufficient without systematic change across Scotland's public services.
1.1 The Current Crisis: Unsustainable System
Pressures The Convergence of Multiple Crises
Local authorities and NHS Boards face an unprecedented convergence of financial, demographic, operational, and political pressures. The Population Health Framework acknowledges that "unless we make this shift to prevention, the demands on support and services will only increase."
Local Authorities: Eight Critical Challenges
1. Unsustainable Service Demand: Rising demand for social care, homelessness support, and mental health interventions while capacity declines. Child protection referrals and social care caseloads have grown significantly, with efficiency gains "outstripped by demand."
2. Workforce Crisis: Critical posts across education, planning, social work, and finance remain unfilled. One CEO noted "sustained vacancies in skilled roles are eroding the ability to deliver statutory services."
3. Child Poverty Mandate vs. Limited Levers: Legal accountability for eradicating child poverty by 2030, yet councils frequently lack levers to impact key drivers like housing supply, social security, or labour markets.
4. The Promise Implementation Gap: Commitment to delivering "The Promise" (Independent Care Review, 2020) faces mismatches between ambition and resources, particularly for shifting from residential to community-based care. The Promise's vision aligns perfectly with prevention approaches: both recognise that supporting families before crisis prevents the need for care placements.
5. Multiple Competing Priorities: Councils must deliver on reducing poverty, transitioning to net zero, supporting sustainable public services, and improving outcomes for children — all with limited resources.
6. The Reactive Spending Trap: Short-term cuts to meet statutory obligations, but known to harm longer-term outcomes — reductions in early intervention 2 services, youth provision, public health budgets — the trap England followed in the 2010s with the consequences outlined by five major children's charities in 'The Long Road to Recovery' (Larkham & Ren, 2025): Rise in children entering care, increases in child poverty and homelessness, sharp deterioration in child mental health and increased later, high-cost interventions.
7. Political Decision-Making Constraints: Short-termism, political churn, and populist pressures hinder strategic decisions, with frequent reversals of long term plans following elections.
8. Capital Investment Backlogs: Ageing infrastructure deteriorates while budget constraints defer maintenance and cancel upgrades. CEOs warn of long-term service degradation and safety risks.
NHS Boards: Five Critical Pressures
1. Workforce Shortages and Burnout: High vacancy rates across clinical professions, with existing staff facing growing burnout while Boards rely on costly agency workers.
2. Financial Unsustainability: Structural deficits, non-recurring funding reliance, and falling capital investment, with multiple Boards reporting they cannot meet demand, maintain safety, and deliver savings simultaneously.
3. Treatment Target Dilemma: Growing tension between political expectations to reduce waiting times and Boards' capacity constraints within budget and workforce limits.
4. Mental Health and Addiction Demand: Rising demand outstrips funding and staff, with many cases reflecting deeper socio-economic drivers that leave Boards trying to solve problems they did not create.
5. Performance Pressure Without System Change: Boards report being "bombarded" with performance frameworks, inspections, and improvement plans that can be duplicative, inconsistent, and distract from operational delivery.
Shared Systemic Issues
Complex responsibilities across health, social care, education, justice, and third sector make coordination difficult; national plans often lack practical delivery support; annual budgeting undermines transformation efforts; and growing gaps exist between citizen expectations and available resources. These challenges reflect system design that was fit for purpose in a different era but is now fundamentally misaligned with the demographic, fiscal, and social realities of the 2020s.
1.2 The Scale of Preventable Harm: Scotland's £6 Billion Crisis
The Evidence Base for Primary Prevention
Scotland's fiscal and operational crisis is largely a consequence of decades of underinvestment in early, upstream intervention. The Population Health Framework explicitly recognises that "primary prevention is 3–4 times more cost-effective than investing in treatment."
The ACEs Reality3 Along with Wales, Scotland has led the UK in recognising the powerful negative impact of ACEs. The 2019 Scottish Health Survey (Scottish Government, 2020) revealed: • 71% of adults had experienced at least one ACE • 15% reported four or more ACEs • The most prevalent were verbal abuse (47%), physical abuse (28%), domestic violence (24%), parental separation (23%), household mental illness (19%), and household alcohol abuse (16%)
The Devastating Impact of Multiple ACEs
Evidence from Welsh ACE studies shows people with four ACEs face dramatically higher risks than those with none (Bellis et al., 2015):
• 3 times higher risk of heart disease, respiratory disease, and type 2 diabetes
• 4 times higher risk of being a high-risk drinke
r • 5 times higher risk of having low mental wellbeing
• 15 times higher risk of committing violence
• 16 times higher risk of using crack cocaine or heroin
• 20 times higher risk of imprisonment
The £6 Billion Annual Cost
Using the 2.8% of UK GDP rate for ACE-related costs calculated by Hughes et al. (2021), Scotland faces an annual burden exceeding £6 billion — over £90 million per local authority and almost £220 million per Territorial NHS Board annually. This covers only ACE-related harm; including other preventable difficulties like insecure attachment and Foetal Alcohol Spectrum Disorders substantially increases the huge scale of Scotland’s preventable costs.
The Human Reality
Evidence from survivors includes: "My mother screaming at me, calling me names, and putting me down. When [spanking me] she would be so angry that she would lose control." "My earliest childhood memory is me sitting alone in my room staring at a wall and hugging my teddy." "Over the next eight years, I endured sexual abuse more times than I could count. I lived in fear." For survivors, these problems often persist to adulthood: "My experiences of being neglected as a child are with me every day ... It was just hell" "I have been in and out of therapy for 25 years... Every day is a struggle with self-esteem." One NSPCC survey (NSPCC, 2023) found 18.6% of UK secondary school children had been severely abused or neglected. Applied to Scotland, this could fill Hampden Park more than 19 times over.
The Primary Prevention Opportunity: Evidence of What Works
Alongside targeted, evidence-based programmes, Scotland has already shown that large-scale, system-wide action can deliver meaningful gains. These include increases in health visitor numbers, strengthened perinatal mental health provision, reductions in children entering care in Glasgow, and North Lanarkshire's notable rise in breastfeeding uptake and duration.4 At the programme level, there is clear evidence that well-timed early-years interventions such as Parent-Child Psychological Support (PCPS), Mellow Parenting (Raouna et al., 2021) and perinatal support services can achieve both short- and long-term improvements. Within two years, interventions like PCPS show significant reductions in insecure attachment and children taken into care, alongside improved parental sensitivity, sense of parental competence, and reduced parental stress (Bujia-Couso et al., 2010). Within four years, primary prevention approaches will demonstrate better child executive function, self-control, emotional regulation, and school readiness. Later in this report, we will demonstrate how the absence of these four skills in children generates enormous annual costs in fields such as academic achievement, antisocial behaviour, benefit dependency, crime, domestic abuse, mental health, persistent unemployment, school behaviour, and tax revenue. The significant cost savings from this core change in focus will stretch over future decades and generations.
Scotland's Third Sector: Essential Partners in Transformation Scotland is extraordinarily fortunate to possess many excellent third sector organisations who carry out work of exceptional value in supporting children and families. From national organisations like Barnardo's Scotland, Children in Scotland, Children 1st, and NSPCC Scotland, to local community groups providing direct support, these organisations possess irreplaceable expertise, community trust, and innovative approaches that will be absolutely vital to successful transformation. Their current funding falls well short of what their contribution merits, and any serious prevention strategy must recognise that these organisations are not additional extras but core partners whose expanded role will be essential for reaching families and delivering prevention support at the scale required. We believe that local authorities and NHS Boards in the UK, including Scotland, spend less than 2% of their budgets on primary prevention – preventing harm before it happens. We recently asked Grok AI to estimate how much Scotland’s statutory agencies spend on developmental primary prevention – i.e. excluding immunisations and only addressing prevention affecting the social and emotional health and welfare of children. Its estimate was less than 0.5% of budgets.
1. Reallocation of resources to developmental primary prevention The Commission of Inquiry recommends reallocating 4–6% of statutory budgets over time to developmental primary prevention. A shift on this scale is required to enable the transformation of Scotland’s health, wealth and social conditions that the Commission believes is possible. The A.R.I.S.E. Blueprint sets out a practical, evidence-based approach to identifying and releasing the resources required to support this reallocation.
1.3 Scotland: A Nation Living Beyond its Means
The Fiscal Outlook: A Path That Cannot Continue
The fiscal deficit in Scotland of £22.7 billion in 2023–24 (10.4% of GDP) was more than double the UK average of 4.5%. Scotland confronts what the Auditor General has termed an "unsustainable financial position." The Scottish Fiscal Commission's 5 April 2025 Fiscal Sustainability Report (Scottish Fiscal Commission, 2025) shows that Scotland's structural deficit — the gap between spending and revenue — persists even during economic stability. Health and social care costs are rising faster than economic growth, while the proportion of working-age taxpayers is falling. The Scottish Government's 2025 Medium-Term Financial Strategy (Scottish Government, 2025c) forecasts that day-to-day funding pressures could exceed resources by £1– 1.9 billion annually by 2027–28. The longer local authorities and NHS Boards defer action, the deeper Scotland moves into a future in which ever-larger portions of the budget are consumed by reactive spending, making necessary change progressively harder to implement. Taken together, Scotland's fiscal reality and the Population Health Framework's call for a decisive shift from reactive to preventative investment create an overwhelming case for immediate action.
Demographic Pressures Scotland's population is ageing rapidly. Over-65s will grow by nearly a third by 2045, and those aged 75+ by 25% in the next decade, while the working-age population shrinks. Without systematic change, health and social care spending could rise from 50% to over 60% of devolved expenditure by 2035 — crowding out investment in education, housing, and infrastructure.
Healthcare Crisis Despite a 21% real terms rise in direct health spending between 2013–2014 and 2022–2023, outcomes are worsening. Key indicators reveal the strain: staff sickness reached 6.2% in 2022–2023 — the highest in a decade. Most waiting standards aren't met. Delayed discharges cost over £200 million per year. Boards must deliver 6% efficiency savings in 2024–2025 — well beyond historical norms. Recent audit reports reinforce these concerns. A sample of just three NHS Boards showed: one with a £46.5 million funding gap requiring extensive reliance on non recurring savings; one requiring £28.4 million in bailouts to break even; and a third facing recurring deficits and needing over £200 million in savings over three years.
Local Government Strain
While Scottish Government revenue funding rose in cash terms between 2013–2014 and 2023–2024, real-terms value fell, especially in general revenue grants — the part councils control. Cuts have hit unprotected services hardest: Environmental services: down 30%, Culture and leisure: down 25%, Planning: down 40%. Meanwhile, demand is rising in housing, education, and mental health, with escalating costs of temporary accommodation and children in care. COSLA estimates a £1 billion funding gap in 2023–2024. Two-thirds of councils used reserves to fill deficits. Audit Scotland concluded in its Local Government in Scotland - Overview 2023 (Accounts Commission, 2023): "Radical change is urgently needed if councils are to maintain services," and "Reform should prioritise prevention."
Three Strategic Choices
Option 1: Continue as Present — Leads to inevitable service collapse as evidence confirms Scotland's local areas cannot meet legal and policy commitments under the current model.
Option 2: Proceed Slowly — Gradual change risks being overtaken by accelerating demographic and fiscal pressures.
Option 3: Embrace Transformative Prevention — Strategic reallocation to proven primary prevention can reduce long-term costs while improving outcomes, though requiring sustained commitment over multiple years.
The Legal Imperative The United Nations Convention on the Rights of the Child (UNCRC) — incorporated into Scots law in 2024 — creates binding obligations requiring public bodies to ensure children's rights to health, education, and protection from harm. It could be argued that allowing children to develop insecure attachment, or harmful ACEs, while there are known, cost-effective methods to protect children from these, constitutes a breach of those rights. Continued underinvestment in primary prevention risks breaching children's rights systematically while deepening fiscal crisis.
1.4 Why This Time Will Be Different: Learning from Christie The 2011 Christie Commission called for prevention and early intervention, yet transformation remained partial. Five factors now distinguish this moment:
1. Fiscal Imperative Creates Political Will: Previously, leaders could choose between prevention and maintaining existing services. Now crisis services themselves are failing, making transformation necessary rather than optional.
2. Legal Obligations Provide Foundation: UNCRC obligations create enforceable duties that cannot be easily ignored, making primary prevention legally necessary.
3. Implementation Guidance Exists: Where Christie provided limited operational detail, this Commission offers specific interventions, resource reallocation mechanisms, and implementation processes from successful examples.
4. Policy Infrastructure Aligned: Multiple government strategies now point toward similar transformation goals, creating a coherent foundation for systematic change.
5. Recognition That Prevention Requires Cultural as Well as Structural Change: Previous reform efforts focused primarily on reorganising services and reallocating budgets without addressing why demand for reactive interventions persists.
2. Community and statutory co-responsibility for prevention The Commission of Inquiry recommends that prevention strategies in Scotland are designed on the basis that sustainable prevention requires both system redesign and intentional shifts in how communities support families and share responsibility for children’s wellbeing and outcomes.
International Precedent: Proven Universal Early Years Models from the Netherlands, Denmark and Sweden For more than two decades the Netherlands, Denmark and Sweden have consistently occupied the top tier of UNICEF Innocenti child well-being rankings (UNICEF, 2025) among rich countries. Each offers a complementary, evidence based component that together forms a complete blueprint for transformative early years reform in Scotland.
• The Netherlands (ranked 1st in every UNICEF league table since 2007) demonstrates the decisive impact of intensive, health-led primary prevention from day one. Automatic enrolment into Kraamzorg (8–10 days of skilled in home postnatal care) and Consultatiebureaus (a nationwide network of free child health clinics reaching ~95% of 0–4-year-olds) detects issues early, builds parental capability and generates estimated returns of €2–3 for every €1 invested (RIVM, 2023).
• Denmark (2nd in both the 2020 and 2025 UNICEF Report Cards) shows how a fully universal, high-quality early childhood education and care system from six months of age sustains outstanding mental, physical and social outcomes even through crises such as COVID-19. Near-universal enrolment (90–96%), capped parent fees, strong staff-to-child ratios and a play-based social pedagogy curriculum deliver returns of €2–3 per €1 invested while keeping child life-satisfaction and health among the highest in the world.
• Sweden complements the other two with its integrated "educare" model and generous parental leave framework. Subsidised, play-based preschool for virtually all children from age 1, combined with 480 days of well-paid leave, has driven female employment to 82%, reduced later mental-health diagnoses and produced long-term fiscal returns of €2.50–€3.00 per €1 spent (OECD, 2024; Skolverket, 2023). The economic case for these systems is compelling, with quantifiable cost-benefit evidence underscoring their efficiency in reducing later interventions, enhancing equity and boosting productivity. The table below summarises key metrics, drawing on national evaluations and OECD benchmarks.
Outcome area Preventive health & acute care Maternal workforce participation Netherlands evidence (2022– 2024) €2–3 saved per €1 invested; 20–30 % reduction in preventable hospital admissions (Ministry of Health/RIVM) Kraamzorg enables 85 % return-to-work Denmark evidence (2022– 2024) €2–3 saved per €1 invested; 15– 25 % drop in later mental-health needs via universal ECEC (Danish Health Authority) Universal ECEC lifts female employment to Sweden evidence (2021–2024) €1.2 bn annual national savings from high immunisation coverage; €1 500– 2 000 per child in avoided mental health treatment Universal preschool → 82 % female Indicative long-term ROI 2–3 : 1 3–4 : 1
Outcome area Equity & lifetime social costs Netherlands evidence (2022– 2024) within 6 months → €4–5 bn annual GDP gain (CBS, 2024) 95 % participation narrows socio economic health gaps by ~25 %, averting ≈ €800 m in lifetime costs (RIVM, 2022) Denmark evidence (2022– 2024) ~80 % → €3–4 bn annual GDP contribution (Statistics Denmark, 2024) 90–96 % enrolment equalises outcomes, saving ~€2 bn in inequality-related costs since 1990s (Danish Ministry of Education) Sweden evidence (2021–2024) employment rate → €10–12 bn annual GDP contribution (OECD, 2024) Expansion 1970– 1998 equalised outcomes and saved ≈ €3 bn in inequality-related interventions (Skolverket, 2023) Indicative long-term ROI 2.5–3 : 1
Taken together, these three small nations illustrate that a coherent, universal early years system — combining intensive postnatal support (Netherlands), seamless high-quality educare from infancy (Denmark) and strong family-workforce policies (Sweden) — is not only feasible but politically durable when protected by cross-party consensus and stable investment of 1–1.5% of GDP. For Scotland, adopting these proven elements offers a realistic pathway to move the United Kingdom out of the lower half of international child well-being tables within a decade, while delivering health, equity and productivity gains conservatively estimated at tens of £billions over ten years. The evidence is clear: sustained political commitment to universal prevention, as demonstrated by these three countries, transforms child outcomes and pays for itself many times over.
An Appeal to Scotland's Political Leaders When this Commission of Inquiry was launched in 2022, every party leader in the Scottish Parliament had pledged support for the 70/30 objective: to reduce levels of child abuse, neglect, and children witnessing domestic violence by 70% by 2030. The Commission, under the leadership of Sir Harry Burns, was challenged to design a feasible action plan to deliver that result. We believe the 'Transforming Scotland in a Generation' A.R.I.S.E. Blueprint will deliver that for future generations of Scotland's children — and transform the life chances of Scotland's children. As Scotland approaches its next General Election, the temptation to score media and publicity points over political opponents will be very strong. We pray that, in this realm at least, cross-party support will continue and prevail. The Netherlands and Scandinavian lessons are unmistakable: lasting transformation comes only when political leaders sustain common commitment across successive governments.
1.5 Scotland's Transformation Opportunity
The Alignment of Conditions
The convergence of fiscal crisis, legal obligations, policy alignment, and implementation guidance creates Scotland's best opportunity for systematic change. The Population Health Framework provides policy commitment; this Commission's Blueprint provides operational detail; fiscal pressures create political urgency; UNCRC obligations provide legal imperative.
The Implementation Pathway Success requires:
• Commitment: Building sustained political support across electoral cycles
• Vision: Creating shared understanding across sectors
• Evaluation: Implementing resource reallocation approaches using evidence based guidance
• Prioritised Action: Deploying interventions proven most effective while adapting to local circumstances
• Empowering Parents: Using Scotland's universal health visiting infrastructure and other means, discussed in this report, to deliver foundational support
Scotland's Choice Scotland's leaders can continue managing decline through reactive spending that grows more expensive while struggling to meet legal obligations to children, or they can seize this opportunity to begin building effective public services focused on prevention and early intervention. The elements for transformation are now aligned. Scotland has demonstrated capacity for innovation repeatedly — from the Early Years Collaborative to COVID 19 adaptation. The opportunity exists to channel that proven capability toward systematic primary prevention.
This is Scotland's opportunity to take a giant leap toward becoming the best place in the world for children to flourish.
References
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