Scottish ministers must be “hard-headed and realistic” in tackling poverty, focusing on targeted interventions funded by “bold” tax decisions instead of universal provision, Humza Yousaf has told a landmark cross-party, cross-sector summit. But the first minister’s suggestion that budget constraints could mean a shift away from policies like free school meals for all was met by an immediate backlash from campaigners. Yousaf pledged to convene the anti-poverty summit – which was attended by about 90 delegates, including opposition leaders, on Wednesday morning – during his campaign for the SNP leadership in March, and has set tackling poverty as a defining priority of his government. Speaking after the event in Edinburgh, Yousaf said the Scottish government had already acted to mitigate the cost of living crisis – citing the “gamechanging” £25 a week per child Scottish child payment – but he said it must do more. “We must be bold in considering future tax decisions. Tough choices will need to be made about existing budgets, and we need to consider whether targeting help is the way forward when money is so tight,” he said. The heavy squeeze on public spending, surging inflation and rising public sector wage bills put huge pressure on the Scottish government’s annual budget and limits the scope for expensive new policies. But third-sector leaders have called for the new first minister to move away from headline-grabbing initiatives, that they say characterised the Sturgeon era, towards a systemic approach to policymaking on poverty eradication, and Yousaf’s tone on Wednesday appeared to reflect this. “It’s not enough to wish poverty away,” he said. “We have to be hard-headed and realistic about what can be done – and then we have to focus on making it happen. That means the debate must now be about tax, targeting and tough choices. We are listening and will not shy away from the decisions needed to reduce poverty.” The summit, which consisted of a series of roundtable discussions, was met with a qualified welcome from civic Scotland, in particular the focus on redistributive taxation and acknowledgement that funding and resources are critical to progress. Some welcomed the involvement of business groups at the event, while others expressed frustration at the lack of opportunity to ask questions and the heavy framing by government representatives around targeting. Campaigners especially balked at Yousaf’s suggestion in an interview with the Daily Record that he may halt the rollout of universal free school meals, championed by his predecessor Nicola Sturgeon. Peter Kelly, director of the Poverty Alliance, urged Yousaf not to roll back on the commitments, adding: “We know that many low-income families just miss out on qualifying for means-tested free school meals, and many others don’t claim because of shame or stigma.” The STUC general secretary, Roz Foyer, said any roll-back would be “fiercely resisted”.