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Understanding Scotland Economy Tracker – February 2025

As we enter 2025, the first edition of Understanding Scotland 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.

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 over 2,000 members of the adult (16+) Scottish public on the most important aspects of our society and economy.

1. Healthcare and cost of living remain top priorities, with the economy emerging as a higher priority for Scots

Healthcare continues to dominate as the most pressing issue for Scots, increasing by four percentage points to 50% naming it as a priority. Cost of living remains stable at 34%. Meanwhile, the proportion identifying the economy as a priority has risen by four percentage points to 20% after hitting a low of 16% in November 2024.

2. Economic outlook remains bleak

A majority of Scots (62%) say economic conditions have worsened over the past year, and 64% believe they will deteriorate further in the next year. While this marks a slight decline of one to two percentage points in pessimism since the last wave, optimism has not grown, with fewer than one in ten reporting an improvement in the last year or predicting an improvement over the next year.

3. Cost-cutting becomes routine, but financial strain hits some harder

Spending cutbacks remain widespread, with 53% of Scots reducing leisure activities, 52% cutting non-essential spending, and 45% saving less than usual—figures that have changed little since November 2024. However, financial strain is more pronounced among Scots aged 16-34, those in lower social grades, households with children, and ethnic minorities, particularly affecting their mental health, physical well-being, and sleep.

4. Signs of recovery for some sectors, but non-essential spending cuts persist

Spending reductions are expected to continue this year, particularly in dining out, with 45% cutting back on takeaways and deliveries and 43% on restaurants. However, there are small signs of recovery in certain areas: the proportion expecting to spend more on clothing and footwear is up five percentage points, while leisure and culture and holidays outside the UK have seen increases of three percentage points each.

5. Glimmers of optimism as more Scots see the country heading in the right direction

While 53% of Scots still believe the country is heading in the wrong direction, this is down three percentage points from the last wave. At the same time, optimism is growing, with 24% now saying Scotland is on the right path – an increase of four percentage points. Meanwhile, 23% remain uncertain, with optimism narrowly overtaking uncertainty for the first time in recent waves.