This edition of Understanding Scotland brings you insights from over 2,000 members of the adult (16+) Scottish public on the most important aspects of our society and economy.
The Understanding Scotland Economy Tracker provides a timely snapshot of public sentiment on key economic and financial issues affecting Scotland. As we enter 2025, the first edition of the year reveals a population still grappling with economic uncertainty, persistent cost-of-living pressures, and deep-seated financial anxieties. While healthcare and affordability remain top concerns, this wave highlights a renewed focus on the broader economy as Scots look to the year ahead.
Healthcare continues to be the dominant issue, with concern increasing, while cost-of-living pressures remain a major priority. At the same time, the economy is emerging as a top issue among Scots, with a notable increase in the proportion who state this as among their priorities. This renewed focus aligns with a bleak economic outlook, with most Scots believing conditions have worsened and expecting further decline. While there are small signs of easing pessimism, optimism remains scarce, with few anticipating improvement.
Against this backdrop, cost-cutting behaviours have become deeply ingrained. Many Scots continue to reduce leisure activities, cut back on non-essential spending, and save less than usual. However, these financial strains are not felt equally – young people, lower-income households, families with children and ethnic minorities are disproportionately affected, with greater impacts on mental health, physical wellbeing, and sleep.
Despite widespread caution, there are tentative signs of recovery in certain sectors. While significant cutbacks in non-essential spending persist, particularly on dining out, some categories show modest signs of improvement. More Scots are beginning to anticipate increased spending on clothing, leisure and travel, suggesting a small but noteworthy shift in consumer confidence.
Finally, while public sentiment remains largely negative, this wave offers early signs of shifting perceptions. Fewer people now believe Scotland is heading in the wrong direction, while a growing proportion feel the country is moving onto a better path. Although uncertainty remains, optimism is gradually emerging as Scots look ahead to the rest of 2025.
As the year unfolds, the Understanding Scotland Economy Tracker will continue to monitor these evolving trends, providing valuable insights into the financial realities and economic outlook of people across Scotland.
