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Understanding Scotland Economy Tracker – August 2025

As Scotland continues to grapple with economic uncertainty, the Understanding Scotland Economy Tracker remains a vital tool for capturing how people are experiencing and interpreting the nations’s shifting landscape. This latest wave reveals a public still deeply concerned about the future, but with subtle signs of stabilisation in how current conditions are perceived.

Understanding Scotland Economy Tracker is produced in partnership with the David Hume Institute.

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5 Key Takeaways

This edition of Understanding Scotland brings you insights from a representative sample of over 2,000 adults (16+) across Scotland on the most important aspects of our society and economy.

HEALTHCARE AND COST OF LIVING CONTINUE TO TOP PUBLIC PRIORITIES

Around half (48%) of Scots see healthcare as one of the top issues facing Scotland, while more than one in three (37%) view the cost of living/inflation as a top concern. Both proportions evidence little change from May, when 49% and 36% said the same. However, since February, the proportion selecting healthcare as a top issue has fallen marginally, while the proportion selecting cost of living has risen slightly, perhaps reflecting recent increases in inflation.

CONCERN WITH IMMIGRATION IS RISING

Immigration has emerged as the third most prominent public priority, pulling away from other priorities such as poverty/inequality, the economy, and trust in politics. One in five (21%) select immigration as a top three priority issue for Scotland, up a notable five percentage points since last quarter when 16% selected this as a key issue. This proportion has steadily risen throughout the past two years from just 4% who saw this as a top issue in May 2023 to its current high.

PESSIMISM REMAINS WIDESPREAD, ALTHOUGH EVALUATIONS OF CURRENT ECONOMIC CONDITIONS ARE IMPROVING

Two in three (67%) Scots report that they believe that general economic conditions are worse now than 12 months ago, excluding don’t knows, down three percentage points from May. Likewise, under half (46%) believe their own personal financial circumstances have worsened, down three percentage points. In contrast, negativity about future general and personal conditions has remained markedly stable over the last quarter with 71% saying they expect general economic conditions to worsen in the next year.

IMPACTS OF CONCERNS WITH MONEY MATTERS REMAIN PERVASIVE

About half of Scots have reduced non-essential spending (53%), cut back on leisure activities (51%), or saved less than usual (45%) in the last year as a result of financial concerns. While the proportion citing these behaviours has remained stable since May, the proportion that have reduced non-essential spending is up three percentage points in the last quarter, suggesting widespread and continued effects from economic struggles.

MANY STRUGGLE TO SAVE DUE TO LIMITED INCOME, WITH OTHERS SAVING OUT OF ANXIETY

Over a third of Scots (35%) say they struggle to save money because their income only covers essentials. This is the most common saving-related behaviour and reflects the ongoing pressure of current living costs. A quarter (25%) are saving because they are unsure what will happen with the economy, and 10% are saving due to concerns about job or income security.