John Swinney has replaced beleaguered housing minister Paul McLennan with returning minister Mairi McAllan in what was seen as a limited Cabinet “reshuffle”.

Mr McLennan leaves his post immediately and Ms McAllan takes over the brief following her maternity leave. She has responsibility for all aspects of housing policy, including heat in buildings.

Gillian Martin has been appointed as Cabinet Secretary for Climate Action and Energy, having held the portfolio during Ms McAllan’s absence.

The First Minister said he was in putting the housing emergency at the heart of the Scottish Cabinet, helping stimulate economic growth, delivering on net zero commitments and tackling child poverty.  

The changes were announced as Mr Swinney comes under increasing pressure from within the party to take a more decisive approach to tackling key issues following its failure last week to hold on to the Hamilton, Larkhall and Stonehouse seat.

Labour unexpectedly won the by-election which was called following the death of popular constituency MSP Christina McKelvie in March.

She also held the Drugs and Alcohol Policy brief which will pass to Maree Todd, who retains her existing responsibility for Sport.

Tom Arthur has been appointed Minister for Social Care and Mental Wellbeing. He was previously Minister for Employment and Investment. His investment responsibilities will be assumed by Deputy First Minister Kate Forbes, while Richard Lochhead’s extended responsibilities see him become Minister for Business and Employment.

Acting Minister for Climate Action Alasdair Allan will leave Government at the end of this week, having indicated that he only wished to serve on an interim basis.

Excluding the Law Officers, the overall size of government reduces to 23, down from 27 in May 2024.

Mr Swinney said: “Scotland’s strengths lie in our people, our communities and our resolve to leave a better future, and better country for the next generation. As First Minister, I am firmly focused on leading a government that unlocks the potential for every person in Scotland to thrive.

“I have made changes to the Cabinet which will further enable us to realise that potential.”

He said tackling the housing emergency and the climate emergency “are two of the biggest challenges facing people across the country and I want them to know they have a government firmly on their side and focused on delivering real change.”

Opposition parties were unimpressed with the changes. Deputy Scottish Labour leader Jackie Baillie said: “When even his own ministers are questioning his leadership of the party, it is clear this is a failing First Minister that [who] hasn’t got a grip.”

Scottish Conservative deputy leader Rachael Hamilton said: “Scots will be forgiven for thinking ‘is that it’? John Swinney is leading a government that is not only out of ideas, but out of personnel, too.”

The changes mean there are now 12 Cabinet Secretaries , the majority of whom are women. Further changes mean the ministerial team reduces to 11, from 14.

The Scottish Cabinet is as follows:

• First Minister John Swinney
• Deputy First Minister, with responsibility for Economy and Gaelic, Kate Forbes
• Finance and Local Government Shona Robison
• Education and Skills Jenny Gilruth
• Justice and Home Affairs Angela Constance
• Social Justice Shirley-Anne Somerville
• Transport Fiona Hyslop
• Housing Màiri McAllan
• Climate Action and Energy Gillian Martin
• Rural Affairs, Land Reform and Islands Mairi Gougeon 
• Health and Social Care Neil Gray
• Constitution External Affairs and Culture Angus Robertson

Daily Business Comment: The First Minister was expected to make some changes following the humiliating defeat in Hamilton, and the pressure has increased on him as his backbenchers and party members become impatient with a perceived lack of progress on a number of fronts.

A change at housing was perhaps predictable given that Paul McLennan has suffered a torrid time dealing with missed new-build targets, controversial rent controls and claims that government policy is deterring investors. These now pass to Mairi McAllan in whom a lot was expected when she first came into Cabinet under Humza Yousaf.

Mr Swinney may have changed a few roles but he continues to focus on a social agenda that isn’t producing positive returns. The party scores badly on poverty, housing, education and health. Turning these around in the next twelve months is a big ask.

Given that he needs some new ideas it was surprising that he did not choose to bring in some fresh blood. After all, three of his Cabinet ministers together with Richard Lochhead, who was given extra responsibilities, will leave politics next year.

Further ministerial changes between now and next May’s Scottish elections would be seen as a sign of weakness and even panic.