Squads

Just to be clear, the reason to be more like 'Spotify et al' is to reduce the hand off times between the different groups and encourage collaboration

Sounds like management is trying to standup a Development Team. Here is a quote from the Scrum Guide:

• Development Teams are cross-functional, with all the skills as a team necessary to create a product Increment;
• Scrum recognizes no titles for Development Team members, regardless of the work being performed by the person;
• Scrum recognizes no sub-teams in the Development Team, regardless of domains that need to be addressed like testing, architecture, operations, or business analysis; and,
• Individual Development Team members may have specialized skills and areas of focus, but accountability belongs to the Development Team as a whole.

Here is one approach I've seen.

Bugs or general support is handled by a separate Client Services or Helpdesk team and the only time they talk to the Development Team is if a ticket gets to a level three (that is, the Helpdesk staff is unable to diagnose or fix it).

I really don't think it matters what Spotify do. Your company is not Spotify.

The idea is that everyone is cross skilled in the different areas

Is the intention to have teams that have a combination of all of the necessary skills, and are more adaptable, or is the emphasis on every individual being cross-skilled? The latter can turn into a destructive obsession; specialists are sometimes valuable, and people who are first-class in all areas tend to be expensive and harder to hire or keep.

I'm not sure if anyone has challenged the management, but what you've described sounds like an attempt to emulate a fashionable company, rather than focusing on the problem they want to solve. If they can explain that problem, it might be possible to find an even better solution. If they can't, maybe they aren't ready to instigate such a dramatic change.

Bringing development teams closer to customer pain points can be a very smart thing to do, and it's likely to trigger some kind of response from the teams. But unless the reasons are clear, the chances of success will be greatly diminished.