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Understanding Scotland Economy Tracker – May 2025

The Understanding Scotland Economy Tracker offers a vital window into how people across Scotland are experiencing and interpreting the country’s economic climate. As we move through 2025, this latest wave paints a picture of deepening public pessimism, with rising concern about the direction Scotland is heading in and mounting anxiety about personal and national economic prospects.

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

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5 Key Takeways

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.

INCREASING PESSIMISM ABOUT SCOTLAND’S DIRECTION AND ECONOMIC OUTLOOK

Economic confidence has declined sharply: 70% of Scots say the general economic conditions are worse than a year ago (up from 62% in February), and nearly half (49%) report that their personal financial situation has deteriorated. Expectations for the year ahead are bleak, with 70% anticipating a worsening economy and 45% expecting their finances to decline further, up six and three percentage points respectively.

HEALTHCARE AND COST OF LIVING STILL DOMINATE, BUT IMMIGRATION RISES AS A GROWING PRIORITY

Healthcare (49%) and the cost of living (36%) remain the public’s top priorities, consistent with long-term trends. However, immigration has entered the top five issues for the first time, cited by 16% of respondents—up six points since last year. Meanwhile, concern about the economy has dropped five points. This reflects a subtle but significant shift in public priorities.

COST OF LIVING CONTINUES TO DOMINATE ECONOMIC CONCERNS

Cost of living remains the top economic concern for 57% of Scots, followed by living standards and wages (33%), poverty and inequality (31%) and public service funding (31%). Women are more likely than men to cite cost of living (60%; 54%) and lack of public spending (35%; 27%), while men are more likely to focus on economic growth (23%; 14%). In more rural regions like the Highlands and Islands, infrastructure investment is a major concern, highlighting the importance of local economic conditions in shaping national sentiment.

FINANCIAL STRESS IS AFFECTING DAY-TO-DAY LIFE AND PERSONAL WELLBEING

Despite steady levels of reported impact since November 2024, half of Scots (50%) say they are continuing to cut back on leisure and non-essential spending. Almost half (48%) are reducing energy use. Financial worries are linked to a range of negative health and lifestyle outcomes, including lost sleep, reduced mental wellbeing and diet-related health conditions. These impacts are disproportionately experienced by women, ethnic minorities, households with children, and lower-income groups, underscoring the unequal burden of the cost of living crisis.

FINANCIAL RESILIENCE REMAINS FRAGILE FOR MANY SCOTS

While some modest gains have been made in short-term financial confidence, vulnerability remains widespread. Over one in five (22%) say they could not cover a £100 emergency without borrowing, and 44% would struggle with a £500 expense. Households with children are particularly vulnerable: only 41% feel confident they could meet a £500 emergency, compared to 61% of households without children. Meanwhile, confidence in the labour market remains mixed, with just over half (53%) of Scots not confident they would find a new job within three months if needed.