Cost of Living Continues to Keep Scots' Awake at Night

23rd August 2026

Tracker survey reveals financial strain is impacting people's daily lives, leisure activities and health.

The ongoing cost of living squeeze remains a dominant issue for Scots. According to the latest Understanding Scotland Economy Tracker, almost half (47%) identify inflation and living costs as one of the most important issues facing the country for a second consecutive quarter.

The latest findings suggest an increasingly anxious public where financial strain is directly impacting daily life, leisure and health. 

Other key findings include:

• More than two-thirds of Scots who expressed an opinion (68%) say the economy is worse than it was a year ago.

• A similar proportion (67%) expect economic conditions to worsen over the next 12 months.

• Only around a quarter of Scots (24%) believe things in Scotland are heading in the right direction.

The survey also highlights how economic pressure is shaping everyday behaviour across Scotland:

• More than half of respondents (52%) say they have reduced non-essential spending because of concerns about money matters.

• Half (51%) say they have cut back on leisure activities.

• Four in ten Scots (40%) say they have dipped into savings to meet higher costs.

• Three in ten say concerns about money have affected their mental health (30%) or caused them to lose sleep (29%).

The findings point to continued pressure on household finances, with large numbers of Scots changing spending habits and making difficult financial choices in response to rising costs.

The majority of Scots remain broadly positive about aspects of employment, attitudes towards income and living standards are markedly less positive:

• Nearly three-quarters of Scots (73%) are satisfied that their employment provides enough paid hours.

• Two-thirds (66%) are satisfied with their job security.

• However, just 37% are satisfied with their income level.

• Almost half (49%) are dissatisfied with how well their income covers the cost of living.

While cost of living pressures remain dominant, the survey points to a shifting set of public priorities.

Immigration has risen to a record high for the series, with one in four Scots (25%) identifying it as one of the country's most important issues. The proportion highlighting social care as a key issue has increased to 13%, its highest level since the earliest wave of Understanding Scotland in 2021, while the environment and climate change has also risen sharply to 13%, its highest level since late 2023.

Meanwhile, the proportion identifying healthcare and the NHS as one of Scotland's most important issues has fallen seven percentage points since May down to 40% or four in ten - its lowest level since January 2022.

Scott Edgar, Head of Analysis and Insights, The Diffley Partnership: 

“The cost of living remains the defining issue for Scots, and the findings suggest financial pressures continue to shape both public priorities and everyday behaviour.

While economic sentiment has become slightly less negative since May, large majorities still believe economic conditions are worsening and expect further deterioration over the coming year.

At the same time, we are seeing the public agenda broaden. Alongside concerns about household finances, issues such as immigration, social care and climate change are becoming more prominent, reflecting a public that is responding both to events happening in Scotland and across the UK.”

Susan Murray, Director, David Hume Institute:

“This survey continues to show a ticking time bomb for those under financial strain as they struggle to make ends meet. A significant proportion of people are forced into behaviours that will have a detrimental effect on their long term health. 

Any government talking about economic growth needs to remember a tired and stressed workforce is not good for productivity or the labour market.”

The Understanding Scotland Economy Tracker surveyed 2,186 adults across Scotland between 2 and 5 August 2026.  The survey has been tracking public opinion and behaviour on the Scottish Economy since October 2021.

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Notes to editors:

Designed by the Diffley Partnership and the David Hume Institute, the survey received 2,186 responses from a representative sample of the adult population, aged 16+, across Scotland. Invitations were issued online using the ScotPulse panel, and fieldwork was conducted between the 2nd and 5th August 2026. Results are weighted to the Scottish population (2024 estimates) by age and gender. 

Press Release: Practical Maths opens doors to higher education for Scottish pupils this results day

4th August 2026

As thousands of young people across Scotland receive their exam results today, new figures highlight how Applications of Maths qualifications continue to open doors that lack of traditional maths once blocked.

As the national #NoWrongPath campaign celebrates the diverse routes young people can take to achieve their goals, new data released today by Qualifications Scotland underlines the important role played by the new Applications of Mathematics qualifications at National 5 and Higher levels in widening access to higher education and future employment.

Today, new figures show that entries into Applications of Mathematics are continuing to increase. The National 5 qualification has grown signifcantly from 4,460 entries in 2019 to 30,045 in 2026. In Higher Applications of Mathematics there was an increase in the number of entries from only 868 entries in 2022 to 7,025 in 2026.

Traditional, “more abstract”, mathematics courses have historically been a stumbling block for some otherwise capable pupils, in some cases even preventing them from fulfilling university entry requirements. The Applications of Mathematics curriculum offers a new way of learning about maths focusing on practical, real-world skills like budgeting, taxation and data analysis.

The David Hume Institute has published a briefing which reveals how the course is increasing uptake of mathematics, whilst serving as a vital bridge into higher education and work for pupils who previously struggled with algebra and theoretical maths.

Opening Doors to Higher Education

For many pupils, achieving a pass in National 5 or Higher Applications of Mathematics is the key that unlocks their choices at college, university or apprenticeship.

Abi, a 2026 University Graduate, shared how the qualification changed her career trajectory:

“I have just graduated with a degree in Community Education. I struggled with traditional maths at Nat 5 but Apps helped me develop skills I needed for university, and life.  Without Applications of Maths I wouldn't have been eligible for the course.  It really is a much needed bridge for young people like me.”

Susan Murray, Director of the David Hume Institute, said:

“Results Day brings a mix of excitement and trepidation. The new Applications of Mathematics curriculum is expanding the pathways to success by giving more young people practical, usable skills for life and work. The relevance of real world maths encourages perseverance ensuring a struggle with abstract algebra does not keep talented young people out of university or the workforce.”

Preparing Young People for the Real World

The new qualification directly aligns with the ethos of #NoWrongPath by recognising that employers and higher education institutions are increasingly placing more value on practical skills such as financial literacy and data handling.

Johnny Timpson, Commissioner, Financial Inclusion Commission said:

"I’m hugely supportive of the development of the Applications of Mathematics curriculum. Stronger financial capability is key to improving people's career opportunities and is also linked to improved well being and resilience to shocks for people of all ages." 

Leon Ward, Chief Executive of charity Money Ready, said:

“This is the kind of content that financial literacy advocates have been arguing should be embedded in the curriculum for years.” 

David McCulloch, High School Mathematics Teacher said:

"As a teacher, we regularly have conversations with young people and their families about N5 and Higher Apps.  There are key skills in the Higher course which are very relevant to careers in financial services such as mathematical modelling, project planning and the use of Excel and statistical software." 

Looking Ahead

As the conversation continues at a national level around education reform and attainment gaps, evidence suggests that the Applications of Mathematics curriculum is increasing opportunities for learning to be connected with real world opportunities. 

The David Hume Institute recognises the need for greater awareness of the qualification among young people, parents, employers, universities and policymakers. While Applications of Mathematics is now well established in schools, many outside education remain unfamiliar with the qualification and the opportunities it provides for learners.

• ENDS - 

Sharing thumbnail image credit: Photo by Aaron Lefler free from Unsplash 3 August 2026

Press Release: New briefing reveals growth in maths education in Scotland

24th July 2026

Sixfold increase in entries suggests the new maths qualification is attracting thousands more young people into mathematics

A new briefing paper, published by the David Hume Institute, reveals that Scotland's National 5 Applications of Mathematics qualification has experienced extraordinary growth. Since its introduction in 2019, entries increased sixfold in six years and it is helping drive a significant rise in the number of young people studying mathematics.

National 5 Entries into Mathematics and Applications of mathematics

The briefing, Applications of Mathematics: A Revolution in Maths Education in Scotland? shows that National 5 Applications of Mathematics entries rose from 4,460 in 2019 to 27,655 in 2025. 

The qualification is now the third most popular National 5 examination in Scotland, behind only English and traditional Mathematics. Together, Applications of Mathematics and traditional Mathematics have contributed to an increase of over a third in the number of pupils taking a National 5 maths qualification.

The paper argues that the qualification represents an important innovation in Scottish education by focusing on practical mathematical skills that young people use in everyday life - including budgeting, taxation, personal finance, loans, interest rates and interpreting data - while also supporting the skills increasingly sought by employers in sectors such as financial services and data science.

Young people who spoke to the David Hume Institute as part of the research said:

• “I like Maths Apps because I can see why I need it in the real world.” High School Student

• “I hated algebra and normal maths but Applications of Maths feels like stuff I’ll need in my life.” High School Student

Overall participation in mathematics has increased by more than a third and rather than replacing traditional mathematics, the evidence suggests the qualification is broadening participation. Some pupils are choosing to study both qualifications at National 5.

There has also been a rapid growth in Higher Applications of Mathematics since its introduction in 2022 - from 868 entries in 2022 to 4,682 in 2025 - demonstrating increasing demand for the qualification that combines mathematical reasoning with practical statistical and financial skills.

Susan Murray, Director of the David Hume Institute, said:

"Applications of Mathematics is an important development which is rapidly growing the number of people studying maths. The practical mathematical skills are helping equip more young people with the skills they need for modern life and work.

“From our past research on The Great Risk Transfer we know how important financial literacy is throughout our lives. This new curriculum helps develop those much needed skills." 

Johnny Timpson, Commissioner, Financial Inclusion Commission said

"I’m hugely supportive of the development of the Applications of Mathematics curriculum. Stronger financial capability is key to improving people's career opportunities and is also linked to improved well being and resilience to shocks for people of all ages" 

Leon Ward, Chief Executive of charity Money Ready, said:

“This is the kind of content that financial literacy advocates have been arguing should be embedded in the curriculum for years.” 

The briefing also draws attention to the need for greater awareness of the qualification among parents, employers, universities and policymakers. While Applications of Mathematics is now well established in schools, many outside education remain unfamiliar with the qualification and the opportunities it provides for learners.

David McCulloch, High School Mathematics Teacher said:

"As a teacher, we regularly have conversations with young people and their families about N5 and Higher Apps.  There are key skills in the Higher course which are very relevant to careers in financial services such as mathematical modelling, project planning and the use of Excel and statistical software." 

Abi, 2026 Graduate said:

"I have just graduated with a degree in Community Education. I struggled with traditional maths at Nat 5 but Apps helped me develop skills I needed for university, and life.  Without Applications of Maths I wouldn't have been eligible for the course.  It really is a much needed bridge for young people like me.“ 

As conversations continue around financial literacy, workforce skills and curriculum reform, the paper concludes that Applications of Mathematics offers an important piece of the jigsaw for how education can better connect classroom learning with real-world challenges and future employment.

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Sharing thumbnail image credit: Photo by Ben Mullins free from Unsplash 23 July 2026

Press Release: Cost of Living Dislodges the NHS as Scots’ Top Concern

25th May 2026

Tracker survey shows economic worries worsen as Scots fear further rises in cost of living 

The cost of living has overtaken healthcare and the NHS as the single biggest concern facing Scots for the first time in nearly three years, according to the latest Understanding Scotland Economy Tracker.

The quarterly survey, produced by The David Hume Institute with the Diffley Partnership paints an increasingly downbeat picture of Scotland’s economic mood following the 2026 Scottish Parliament election.

Key findings include:

• Almost one in two Scots (47%) now rank the cost of living and inflation among the top issues facing the country. 

• More than three in four Scots who expressed an opinion (77%) say the economy is worse than a year ago, up sharply from around three in five (62%) in February, while a similar proportion (73%) expect economic conditions to deteriorate further over the next 12 months.

• Despite this collapse in economic sentiment, three in ten Scots (30%) now think the country is heading in the right direction, up notably since November 2025 (22%).

The findings suggest household financial pressures are once again dominating Scots attitudes, despite easing inflation headlines and political change at Holyrood. 

The survey also highlights how economic pressure is shaping everyday behaviour across Scotland:

• More than half of respondents (54%) say they have cut back on leisure activities because of concerns about money matters.

• A similar proportion (52%) say they have reduced non-essential spending.

• More than two in five Scots (41%) say they have dipped into savings to cope with rising costs.

The findings point to growing pressure on consumer confidence and household resilience - a significant concern for Scotland’s wider economy given the importance of consumer spending to the economy.

The report also identifies warning signs emerging in the labour market and housing affordability:

• Less than half of Scots (43%) are confident they could find a new job within three months if necessary, a decrease of four percentage points from last May (47%).

• Six in ten people (61%) say they are confident they could cope with higher housing costs over the next six months - down compared to last year.

The findings highlight the difficult economic backdrop faced by the country as it begins the new parliamentary term, with public expectations increasingly focused on living standards, wages and household financial security rather than constitutional debate.

The survey also highlights continued support for preventative approaches to tackling economic hardship:

• Nearly four in five Scots (78%) agree it costs the public purse more in the long run when people cannot meet their basic needs today.

• More than two thirds (68%) agree there is a collective responsibility to ensure a safety net during hard economic times.

Scott Edgar, Senior Research Manager, The Diffley Partnership: 

“Coming just after the Scottish Parliament election, these findings underline the scale of the economic challenge facing the new Parliament. While there has been a modest improvement in how people feel about the country’s direction, that sits alongside a much more pessimistic view of the economy and living standards.

The cost of living is the defining issue for Scots, overtaking the NHS as the top concern, and shaping how people are managing their day-to-day lives. 

The task now for decision-makers is to rebuild confidence at a time when financial pressures remain entrenched and expectations for the future are increasingly fragile.”

Susan Murray, Director, The David Hume Institute:

“Consumer confidence is fundamental to a thriving economy. When people are cutting back on leisure activities, reducing non-essential spending and dipping into savings to cover everyday costs, that has a direct impact on the wider economy, investment and local communities.

“The challenge for Scotland’s political and business leaders now is to rebuild confidence at a time when public pessimism about the economy and rising cost of living is deepening and expectations for the future are becoming increasingly fragile.”

The Understanding Scotland Economy Tracker surveyed 2,170 adults across Scotland between 11 and 15 May 2026.  The survey has been tracking public opinion and behaviour on the Scottish Economy since October 2021.

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 Notes

• Designed by the Diffley Partnership and the David Hume Institute, the survey received 2,170 responses from a representative sample of the adult population, aged 16+, across Scotland. Invitations were issued online using the ScotPulse panel, and fieldwork was conducted between the 11th and 15th May 2026. Results are weighted to the Scottish population (2024 estimates) by age and gender. 

Sad news about former Director Jeremy Peat

We were saddened to hear that former Director, Jeremy Peat passed away recently. Our thoughts are with his wife Philippa and his family at this sad time.

Blog: Civil Litigation Hokey Cokey - Why This “Small Change” Could Carry Big Economic Risks for Scotland

22nd April 2026

At first glance, it might look like a minor procedural tweak — a minor bit of legal “hokey cokey”. A switch from opt-in to opt-out in civil litigation. In, out, to shake it all about.

Photo credit: Pierre Goiffon free licence on Unsplash 22.4.26

But this is not an incidental change. It has the potential to reshape Scotland’s legal and economic landscape in ways that deserve far more scrutiny than it is currently getting.

A change that could slip through unnoticed

Early in the next Scottish Parliamentary term, this issue is likely to land on the desks of newly elected MSPs — possibly as a Scottish Statutory Instrument. That matters, because such instruments can become law quickly, with limited debate.

At a time when many MSPs will be new to Parliament, hiring staff and navigating steep learning curves, there is a real risk this proposal gets dismissed as a technical adjustment.

It isn’t. It is a structural shift with far-reaching consequences.

What’s actually being proposed?

The Scottish Civil Justice Council is exploring changes to group proceedings under the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018.

At the heart of this is a move toward a US-style opt-out model for class actions.

Currently, individuals must actively choose (opt in) to be part of a group legal claim. Under the proposed system, people would automatically be included unless they take action to opt out.

That might sound consumer-friendly — more people included, more access to justice. But the reality is far more complicated.

Why it matters: scale changes everything

An opt-out system dramatically increases the scale of litigation. Suddenly, claims can encompass hundreds of thousands — even millions — of people, most of whom will not even know they are part of a case.

This creates a very different legal ecosystem — one that critics argue risks prioritising volume over value, and process over outcomes.

The concern: who really benefits?

Supporters frame mass litigation as a tool for consumer justice. But growing evidence from other jurisdictions suggests the biggest winners are often not consumers — but lawyers and litigation funders.

These cases are typically financed by third-party funders, many of them offshore investment vehicles. Their returns come from a share of settlements or damages.

That raises a critical question:

• how much of any compensation actually reaches consumers — and how much is extracted along the way?

As Seema Kennedy from Fair Civil Justice puts it:

“Large mass legal cases claim to provide access to justice for consumers… But they only work if they deliver the intended results — and increasingly the evidence suggests that they are not working.”

Even under “no-win, no-fee” arrangements, consumers ultimately pay — through deductions from settlements and damages.  Research in the US shows the average percentage of settlements reaching the consumer is less than 10%. 

A system with limited transparency

One of the more troubling aspects is the lack of oversight or regulation in the litigation funding sector.

Consumers often:

●      Lack clear information about risks

●      Sign confidentiality agreements

●      Have limited visibility of who is funding their case and on what terms

When things go wrong, the consequences can be severe — as seen in past scandals where claimants were left exposed to unexpected legal costs.

This is not a theoretical risk. It is a practical one.

Economic consequences: beyond the courtroom

The implications extend well beyond individual claims.

Business groups have long warned that introducing US-style mass litigation could:

●      Deter inward investment

●      Increase the cost of doing business

●      Divert capital away from innovation, jobs, and growth

Colin Hutton, of International law firm CMS describes the proposal as:

“The most significant development in Scottish civil litigation in decades… with implications that reach far beyond the courtroom.”

International comparisons reinforce the concerns. Evidence from countries such as Portugal and the Netherlands suggests opt-out regimes can trigger a surge in litigation — often targeting the public sector as well as private companies.

The risk of becoming a litigation outlier

If Scotland adopts this model while other parts of the UK take a more cautious approach, it risks becoming a legal outlier.

That matters for competitiveness.

Global businesses — which bring jobs, tax revenue, and investment — factor legal risk into decisions about where to operate. A more litigious environment increases uncertainty and cost.

Over time, that can shift investment elsewhere.

The cost to the wider economy

The broader economic impact could be significant.

Research from the European Centre for International Political Economy warns that unchecked growth in mass litigation could cost the UK economy up to £18 billion.

Small and medium-sized enterprises are particularly exposed:

●      They lack the resources to absorb prolonged legal battles

●      They may settle weak claims simply to avoid costs

●      Capital is diverted from growth into legal defence

In the United States — often cited as a cautionary example — SMEs bear more than half the cost of litigation, amounting to hundreds of billions annually.

More litigation ≠ better outcomes

There is a broader policy question here.

More litigation does not necessarily mean better consumer outcomes. In many cases, it leads to:

●      Higher prices (as businesses pass on legal costs)

●      Slower access to redress

●      Overburdened courts

If the goal is to improve consumer protection, there may be more effective routes:

●      Stronger regulation

●      Better ombudsman services

●      Faster, more accessible complaints systems

A decision that deserves attention

This is not just a legal technicality. It is a decision about the kind of economy Scotland wants.

An opt-out system could:

●      Expand access to claims — but dilute individual benefit

●      Attract large-scale litigation — but deter business investment

●      Promise consumer justice — but shift value to offshore funders

That is why this “hokey cokey” matters.

Because once Scotland steps into this model, stepping back may not be so easy.

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The David Hume Institute is partnering on an event in June to discuss this further with CMS, CBI Scotland, Fraser of Allander Institute and Fair Civil Justice. 

New to this subject?

• Listen to BBC Radio 4, File on 4 Investigates: No Win No Fee… No thanks?
  

Sharing thumbnail image credit: Photo by Tingey Injury Law Firm downloaded free from Unsplash on 22.4.26

Press release: New Chair announced as Scotland faces “significant long-term challenges”

21st April 2025

The David Hume Institute announced Professor Paul Atkinson as its new Chair, at a time when Scotland faces growing economic and policy challenges.

Professor Atkinson takes office on 1st May succeeding Professor Jan Bebbington and Liz Ditchburn CB, who step down as Co-Chairs following a period of significant contribution to the Institute’s work.

His appointment comes at a pivotal moment, with increasing pressure on Scotland’s economy, public services and long-term policy challenges - issues that sit at the heart of the DHI’s work.

Professor Atkinson brings extensive experience across investment, entrepreneurship and public interest leadership. He is Co-Founder and Partner at Par Equity, now PXN Group, a leading UK investment firm, and holds a number of senior governance roles across business and the non-profit sector.

He also currently serves as Chair of the Cyber and Fraud Centre Scotland and the Scottish Forestry Trust, reflecting a strong commitment to public purpose alongside commercial expertise.

“This is a moment where evidence-led debate really matters”

Commenting on his appointment, Paul Atkinson said:

“I am honoured to be taking on the role of Chair of the David Hume Institute.

It is a genuinely distinctive organisation with a long-standing reputation for independence, intellectual rigour, and constructive engagement with complex policy questions. 

At a time when Scotland faces significant long-term challenges, the Institute’s commitment to thoughtful, evidence-led debate has never been more important. I look forward to working with the Board and the wider team to strengthen this vital work.”

Outgoing Co-Chair Professor Jan Bebbington reflected on her time in the role:

“It has been a privilege to be a trustee and Co-Chair of such a prestigious and influential organisation. 

The David Hume Institute plays a crucial role in Scotland’s civic and policy landscape, and I am immensely proud of what has been achieved during my tenure. 

I am delighted to be handing over to Paul, whose experience, values, and commitment to public purpose make him an excellent choice to lead the Institute into its next chapter.  I remain committed to the Institute as I take on a new role as an advisor”

Supporting understanding of Scotland’s economy and society

The David Hume Institute works to encourage informed debate through independent research and analysis, helping people better understand Scotland’s economy, public policy and society.

Professor Atkinson’s appointment marks the start of a new chapter in the Institute’s forty year history, as it continues to support discussion and decision-making on some of the most pressing issues facing Scotland today.

Susan Murray, Director of The David Hume Institute commented:

“It has been wonderful working with Jan and Liz as Co-Chairs over the last few years and I’d like to thank them for all their hard work. 

It is fantastic to welcome Paul to the role of Chair as he brings such energy, enthusiasm and a breadth of knowledge that will help guide us in the years ahead.”

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Press release: New research to reveal housing associations’ roles in improving Scotland’s economic performance

SFHA commission new research from Professor Duncan Maclennan and the David Hume Institute to better understand the sector’s impact on the Scottish economy.

The Scottish Federation of Housing Associations (SFHA) has commissioned research from the David Hume Institute and global housing expert, Professor Duncan Maclennan to better understand the contribution of housing associations to Scotland’s economy.

The research, titled Beyond bricks and mortar: Recognising housing associations’ role in Scotland’s economyseeks to evidence the impact of housing associations as a national driver of fairer and faster economic growth.

Professor Maclennan is an applied economist specialising in housing, neighbourhoods and cities with his professional background involving both senior academic and policy roles in Australia, Canada and the UK.

His recent work has advocated for a whole system approach, recognising the economic drivers and adverse consequences of poor housing outcomes, to tackling the housing polycrisis. This includes a major report he authored with the David Hume Institute last year titled Prosperity Begins At Home. The report had argued for a radical shift in the understanding of housing as just a social issue to instead be recognised as a critical economic infrastructure shaping jobs, economic growth and environment. 

The new research commissioned by SFHA is due to report later this year and will build on the themes of the Prosperity Begins At Home report. 

As part of the research, SFHA member housing associations will shortly receive a survey to share their insights into the scale and economic reach of their organisation.  Professor Maclennan will use these insights along with other research on how housing outcomes impact health, education and accessibility to jobs in ways that shape growth and productivity.

The aim of outlining the full contribution of housing associations to Scotland’s economy comes as the country is set to go to the polls for May’s Scottish Parliament election. The research findings will provide an opportunity for elected MSPs to understand the full scale and reach of Scotland’s housing associations as a driver for economic growth and productivity. Abating the housing polycrisis requires a change in mindsets, systems and outcomes and the research will provide a coherent economic story for politicians and practitioners that has been missing too long in Scotland.

SFHA Chief Executive, Richard Meade said:

“Housing associations and co-operatives have been an integral part of Scotland’s social fabric for decades providing over 300,000 secure, warm and affordable homes in communities everywhere from Shetland to the Scottish Borders.

“However, as well as their unique social purpose, housing associations make a significant contribution to Scotland’s economy. They provide tens of thousands of jobs, invest significantly in communities and the social infrastructure they create is vital to supply chains and businesses throughout the country.  

“We are delighted to commission the David Hume Institute and Professor Duncan Maclennan to better evidence the contribution of housing associations to Scotland’s economy. This research will show the impact housing associations have on the economy and the contributions they make to meeting  Scotland’s economic missions..

“Ending the housing emergency is not only a moral imperative, but it is also an economic imperative. This research will set out an evidence-based business case for investing in housing associations to create a more prosperous country.”

Professor Duncan Maclennan said:

“Housing has too often been viewed narrowly as a social issue, when in reality it is a fundamental part of a well-functioning economy. This research will explore how housing associations contribute not only to meeting housing need, but to improving productivity, supporting labour markets and enabling sustainable economic growth across Scotland. By taking a whole-system perspective, we can better understand the full economic value of the sector and its role in shaping a more prosperous future.”

Susan Murray, Director of the David Hume Institute said:

“This research builds on our work highlighting housing as essential economic infrastructure. At a time when Scotland is focused on growth and productivity, it is vital that we fully recognise the contribution housing associations make - not just socially, but economically. By strengthening the evidence base, this research will help inform policy and investment decisions that support both communities and long-term economic resilience.”

[ENDS]

Notes to Editors

• Housing associations directly employ over 13,000 people across Scotland and invest hundreds of millions of pounds in developing new homes and improving existing homes.

• Scottish Federation of Housing Associations (SFHA) is the membership body for, and collective voice of housing associations and co‑operatives in Scotland. 

• About Professor Duncan Maclennan: Duncan was a member of the Board of Scottish Homes from 1989 until 1999 and then spent a decade working in government, as special Adviser to the First Ministers of Scotland, as a Chief Economist in the Government of Victoria and as Chief Economist in Canada’s Federal Department for Infrastructure and Cities. He has acted as adviser to Ministers in the UK, Scotland, France, Poland and Norway, Canada, Australia and New Zealand.  He is a fellow of the Royal Society of Edinburgh, the Academy of Social Sciences and Honorary Member of the Royal Town Planning Institute, The Chartered Institute of Housing and the Royal Institute of Chartered Surveyors. He was awarded a CBE for services to UK housing research in 1997. He remains affiliated to the University of Glasgow as an Emeritus Professor of Urban Economics and holds Professorial appointments in Housing Economics at McMaster University (Ontario) and UNSW (Sydney).

• About the David Hume Institute: The David Hume Institute is an independent think tank with a mission to improve understanding of the economy in Scotland. DHI undertakes research and hosts public events to encourage discussion about the economy and society.  

Press Release: NHS and Cost of Living Top Priority for Voters

Scots feel marginally less pessimistic about the country’s economy, but pressure on spending remains

Nearly half of Scottish voters say healthcare is one of the most important issues facing Scotland, followed closely by the cost of living, according to the latest Understanding Scotland Economy Tracker.

The final wave of the survey before the May election, published by the Diffley Partnership and the David Hume Institute, found around half (48%) of Scots say that healthcare and NHS is a top priority, while more than two in five (43%) said the cost of living and inflation, the biggest rise in concern this wave, up five points.

Almost one in four (23%) name immigration as a top issue - similar to the last tracker in November (22%).

A second tier of concerns remains steady: around one in five (18%) mention poverty and inequality, and the same proportion (18%) cite the economy more broadly. Around one in seven (15%) point to trust in politics, while around one in eight (13%) identify housing.

Economic pessimism eases — but pressure remains

While concern remains high, economic sentiment has improved modestly:

• Around three in five (62%) of those that express an opinion say the economy has worsened over the past year, down seven points since November.

• Two in five (41%) say their personal finances have deteriorated, down six points.

• Two in three (66%) expect economic conditions to worsen in the year ahead, down from nearly three in four (73%) previously.

Yet financial strain is still widespread:

• Just over one in two (52%) report that they have recently cut non-essential spending

• One in two (50%) have reduced leisure spending

• Almost two in five (39%) have dipped into savings

• Three in ten (31%) say money worries are affecting their mental health

Looking ahead, essential costs continue to weigh heavily:

• About seven in ten (69%) expect higher utility bills

• One in two (50%) expect to spend more on food and drink

• Around one in two (49%) foresee higher housing costs

The data also points to deep scepticism about the economic system itself:

• One in fourteen (7%) believe the economy works for most people

• Just one in twelve (8%) think it works for them personally

• Seven in ten (71%) believe it primarily works in the interests of the wealthy

As the election campaign begins, the picture is clear: voters remain under sustained financial pressure and deeply concerned about core public services, but with a cautious sense that the economic outlook may be stabilising.

Scott Edgar, Senior Research Manager, The Diffley Partnership:

“As we move into the election campaign, voters are sending a very clear signal: the NHS and the cost of living will define this contest. Even though pessimism about the economy has eased slightly, people are still feeling real pressure in their day‑to‑day lives. Any party seeking to win trust in May will have to demonstrate not only that they understand these pressures, but that they have credible plans to address them.”

Susan Murray, Director, David Hume Institute:

“There are tentative signs of improvement but confidence in the economic system itself remains strikingly low. Very few people believe the economy works for them — or for most other people.”

“With more than one in four people losing sleep over their finances and one in five people saying money worries are making them less effective at work, there is still a long way to go to tackle the low wage, precarious work that is undermining the economy and the nation’s resilience.

“The challenge for policymakers is not only easing immediate pressures for individuals and businesses, but rebuilding faith that Scotland’s economy can deliver fairness and opportunity more widely as we transition to new industries and ways of living.”

Notes

• Designed by the Diffley Partnership and the David Hume Institute, the survey received 2,131 responses from a representative sample of the adult population, aged 16+, across Scotland. Invitations were issued online using the ScotPulse panel, and fieldwork was conducted between the 1st-4th February 2026. Results are weighted to the Scottish population (2024 estimates) by age and gender. 

Image credit: Front cover of the Understanding Scotland Economy Tracker, February 2026, image of Arbroath Town Centre by S. Murray

Blog: Nuclear Power - A White Elephant in the Energy Debate

12th February 2026

By Pete Roche

As Scotland prepares for elections, pro‑nuclear lobbyists are urging the Scottish Government to lift its ban on new nuclear developments.

Yet the evidence shows that building new nuclear power stations would be an expensive white elephant — too slow, too costly, and ultimately unnecessary for tackling climate change.

Investing in nuclear now risks diverting resources from cheaper, faster, and safer renewable alternatives that are ready to deploy and without the risk of hazardous waste.

Torness Power Station by Walter Baxter, CC BY-SA 2.0, via Wikimedia Commons

Nuclear makes us more vulnerable

Recent events in Europe underline nuclear’s vulnerabilities in a warming world. In summer 2025, prolonged heatwaves forced several French nuclear plants to reduce output or shut down entirely because the rivers and coastal waters used for cooling became too warm to operate safely. At sites including Golfech and Blayais operators had to curtail production, while the Gravelines plant faced additional disruption when swarms of jellyfish clogged its cooling systems. These incidents show how our changing climate can turn nuclear plants into operational white elephants at precisely the time electricity demand is high as people try to cool homes and buildings.

All energy sources produce carbon emissions over their lifecycle, but nuclear power stations typically emit more CO₂ per kilowatt-hour than wind or solar when construction, uranium mining, and waste management are included. For example, Sizewell C, currently under construction in Suffolk, is not expected to offset the emissions generated during its build phase until the late 2030s — well after the UK should have largely eliminated fossil fuels from electricity generation. Renewables, by contrast, deliver low-carbon power from day one.

Nuclear increases risk

Nuclear also carries long-term environmental and security risks. Coastal and riverside sites face rising sea levels and heatwave-induced water shortages, creating further potential for nuclear plants to become white elephants. They produce long-lived radioactive waste with no permanent disposal solution, are vulnerable to terrorism or armed conflict, and uranium mining causes serious ecological damage. 

Advocates argue nuclear is needed for “baseload” power because wind and solar are variable. But baseload is an outdated concept.

Modern grid operators emphasise flexibility — blending renewables, storage, and demand management — rather than relying on inflexible generators. Large nuclear plants cannot easily ramp output to match demand and risk creating the same mismatch that critics cite for renewable variability. Proposed small modular reactors (SMRs) are similarly problematic: only two operate commercially worldwide, they are unproven at scale, and early evidence suggests they may be even more expensive per unit of electricity while producing more toxic waste — another potential white elephant. 

Voters need real solutions, not white elephants

Meeting Scotland’s energy needs with renewables is feasible and cost-effective. Analyses suggest a renewable-first strategy could save the UK hundreds of billions compared to nuclear-centric plans, making the most of Scotland’s wind, solar, and engineering expertise. In contrast, costly nuclear projects risk becoming long-term white elephants — expensive, slow, and unsafe — at a time when voters need solutions that work now, not in a far distant future.

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Pete Roche is an energy consultant and policy advisor based in Edinburgh. For 30 years, he has worked on environmental and energy efficiency matters, both as an installer and as a consultant. He has represented organisations at meetings across the world, including OSPAR, IMO, and the UN as well as the BNFL National Stakeholder Dialogue in the UK. He was also a member of the Government’s Committee Examining Radiation Risks of Internal Emitters, and acted as a consultant for CoRWM - The Committee on Radioactive Waste Management.

Blog: Rays of Sunshine in Research Gloom

Tuesday 2nd December

By Keith Robson

Keith Robson reflects on the latest Understanding Scotland Economy Tracker insights and how it connects to his work with The Open University in Scotland.

The Open University is the largest provider of part-time higher education in Scotland and is a world leader in providing innovative and flexible distance learning opportunities.

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Last week I had the pleasure of attending the latest ‘Understanding Scotland’s Economy Tracker’ breakfast briefing. I’m a regular as you always get an interesting and often challenging perspective from the keynote speakers - and the audience. It aligns with the Open University’s mission to be open to people, places, methods and ideas.  

At each event the results of the survey are expertly explained by Scott Edgar, from the Diffley Partnership. Delivered with humour in a straight-forward manner, Scott sets out what the survey data means for the people behind the figures. This quarter the David Hume Institute arranged reflections from Catherine McWilliam, from the Institute of Directors Scotland and Shan Saba, Director of Brightworks, Scotland’s leading recruitment agency to discuss the findings.

Let’s not beat about the bush - there is not much optimism in the findings.

Two out of three respondents reported that general economic conditions have worsened over the last twelve months. A further three in four respondents expect the general economy to worsen over the next year. Over half of respondents have cut back on non-essential spending.   

The Open University is Scotland’s national widening access and lifelong learning university. We are the largest provider of undergraduate part-time higher education in Scotland. Therefore I was particularly struck by the Labour Market insights.

More than half of respondents said they would need to retrain or upskill if they want to get a new job. One in five said that they had not had any training through their employer since their initial induction.

The 2025 OU Business Barometer

These figures chime with the OU’s Business Barometer 2025 - a survey of 2000 senior decision makers across the UK; over half (52%) representing small and medium-sized businesses. Plus one thousand members of Gen Z (aged between 18 and 24) were also surveyed for the report.

For respondents in Scotland one in three say that budget constraints/lack of funding are barriers to offering more training. We also found a mismatch between employers and employees about training and job retention which was a discussion point with Catherine and Shan who shared their experiences.  

The survey found that concerns about money matters were particularly prevalent for respondents in lower SIMD area, the young age group and those with children. Again, this mirrors our experiences of calls from students and in turn a reduced take-up of the Part Time Fee Grant for those students earning £25,000 or less per annum.    

The OU’s Scottish Parliament election manifesto Skills for Life calls for a greater focus on flexible part-time learning with the need for upskilling and reskilling in the labour market. You can read more here. 

So where does the sunshine come from amidst the gloomy outlook?

For me it is in our students’ success. We are supporting thousands of students to study in flexible ways that fit with their other commitments. Each year our graduation ceremonies are full of stories the bring rays of sunshine and hope.

I wholeheartedly recommend spending five minutes looking at the heartwarming stories on our website and challenge you not to feel uplifted.

Press release: Scots brace for tougher economic times

23rd November 2025

New Understanding Scotland Economy Tracker shows bleak labour market outlook and rising financial strain ahead of UK Budget and Scottish election

Economic pressures continue to weigh heavily on households across Scotland. New data from the Understanding Scotland Economy Tracker reveals pessimism about both current and future financial conditions has grown since August, just as the UK Budget looms and six months remain until the Scottish Parliament election.

Seven in ten Scots (69%) say general economic conditions have worsened over the past year, up three percentage points from the previous wave, while almost half (47%) report their own financial circumstances have deteriorated. Looking ahead, seven in ten Scots (73%) expect the economy to worsen in the next 12 months, and nearly half (47%) anticipate their personal finances will follow suit.

The report, commissioned by The David Hume Institute and produced by the Diffley Partnership, highlights how these concerns are shaping everyday life:

• Around half of Scots have cut back on non-essential spending (53%) and leisure activities (51%), unchanged from August.

• Nearly half (47%) have reduced heating or energy use, up five percentage points as winter approaches.

• Three in ten (28%) report financial stress impacting mental health, while one in four (25%) have lost sleep over money worries.

• One in five (22%) have used credit cards when they otherwise wouldn’t, and almost one in five (18%) say financial strain has affected their physical health.

Perception around the labour market outlook is also bleak: seven in ten (70%) Scots do not expect more job opportunities in the next year, and just one in four (24%) believe wages will keep pace with the cost of living. A majority (56%) think they would need to retrain to secure a new job. Meanwhile one in five (22%) report not receiving any employer-provided training beyond their initial induction.

Healthcare (47%) and the cost of living (38%) remain the top public priorities, but immigration continues to climb, with one in five (22%) now citing it as a top issue for Scotland—its highest level since the series began. 

Scott Edgar, Senior Research Manager at Diffley Partnership, said:

“This wave of data shows a public bracing for tougher times. Pessimism about the economy and personal finances is deepening, and concerns about job security and skills are widespread. With the UK Budget this week and the Scottish Parliament election just six months away, these findings underline the need for policy responses that address both immediate cost-of-living pressures and longer-term labour market resilience.”

Susan Murray from the David Hume Institute said

“Our latest research paints a picture of many people feeling squeezed from lots of directions. There is a sense that opportunities in the labour market are narrowing, wages won’t keep up with inflation, and a lack of training raises real questions for business owners seeking to boost the productivity of their workforce. With so many people still losing sleep over their finances, we are a long way from improving wellbeing and economic resilience. On Wednesday we will find out if the UK budget will bring some light at the end of the tunnel for those who are struggling.”

ENDS

Notes

Designed by the Diffley Partnership and The David Hume Institute, the survey received 2,245 responses from a representative sample of the adult population, aged 16+, across Scotland. Invitations were issued online using the ScotPulse panel, and fieldwork was conducted between the 1st-4th November 2025. Results are weighted to the Scottish population (2023 estimates) by age and gender. 

Blog: How Free Bus Passes for Young People are boosting the economy

21st November 2025

by Ellie Craig MSYP

Ellie Craig MSYP is Chair of the Scottish Youth Parliament and the MSYP for Glasgow Cathcart. She is also a trustee of Young Scot and a board member of The National Lottery Community Fund. Outside of her governance roles, Ellie is about to enter her final year at the University of Glasgow, studying Politics and Sociology and also works as a youth worker for a young carers centre.

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When Scotland introduced free bus travel for everyone under 22, the policy was often discussed in terms of fairness and sustainability. But beyond the social benefits, there’s an important economic story to tell.

Free bus passes for young people aren’t just a transport policy — they’re an economic multiplier. That means the money invested by the government generates wider and repeated benefits across the economy. With over 250 million journeys taken since the scheme launched three years ago, it is clear that this is a conversation worth having. 

Saving Money, Spending Locally

At the most basic level, free bus travel saves young people and their families money. The average bus fare in Scotland can quickly add up, especially for students or apprentices commuting daily. When that cost disappears, young people have more disposable income to spend on other things — food, clothes, social activities, or technology.

This change in spending behaviour creates a multiplier effect. Every pound not spent on bus fares is likely to be spent in local shops or cafes, supporting small businesses and helping them pay wages, which in turn are spent again in the economy. The benefits ripple outward, supporting more jobs and local growth.

Opening Doors to Opportunity

The economic impact isn’t just about what young people buy — it’s also about where they can go. Free bus travel gives young people greater access to jobs, apprenticeships, colleges, and universities, especially in rural or low-income areas where transport costs can be a major barrier. 

In urban areas where there are more bus options, it is also resulting in more school trips as teachers no longer have to worry about increasing the cost of the school day by asking parents for additional money.

With more affordable access to work and education, young people can build skills, earn higher incomes, and contribute more to the economy over their lifetimes. In this way, the policy boosts productivity and strengthens Scotland’s future workforce. It’s an investment not only in public transport but in human capital — the skills and potential of the next generation.

Reviving Town Centres

Free bus travel also helps reconnect communities. Many young people use their bus passes to travel to high streets, cinemas, sports clubs, and cafes that they might otherwise struggle to reach. This movement supports local businesses, encouraging more activity in towns and city centres that have struggled with declining footfall.

When these businesses do well, they hire more staff, pay more taxes, and buy more from suppliers — all of which adds up to stronger local economies. It’s a clear example of how public spending in one area can trigger private spending and growth in others.

Long-Term Savings for Society

There are also longer-term financial benefits. When more young people can access education and work, fewer need unemployment or welfare support. Building people’s confidence on public transport early in life also reduces car use so lowers congestion, reduces emissions, and improves public health — all of which save money for government and taxpayers over time.

The Bigger Picture

In economics, a multiplier describes how one initial investment can lead to a larger overall increase in national income. Free bus passes for young people in Scotland do exactly that. By cutting transport costs, opening up opportunity, and encouraging local spending, they create economic benefits that far exceed the initial government outlay.

This is why young people in Scotland are calling for expansion of the scheme up to 25 and across all forms of public transport. This policy features as part of the Scottish Youth Parliament's Manifesto for the 2026 Scottish Parliament election, ‘Dear Scotland’s Future’. Read about all 31 policies here. 

In short, this isn’t just a policy about buses — it’s about building a fairer, more connected, and more prosperous Scotland for everyone.

Press Release: Bold Reform Needed to End Scotland’s Housing Polycrisis

Radical shifts in housing policy needed to tackle record homelessness, rising rents, and declining homeownership.

28th September 2025

Scotland is in the grip of a housing polycrisis: rates of homeownership have fallen; rents in the private sector continue to increase; and rates of both homelessness and households living in temporary accommodation have reached record highs across the country. . 

A new report by Professor Duncan Maclennan and researcher Jocelyne Fleming, commissioned by the David Hume Institute, concludes these challenges are damaging the economy, fuelling inequality, harming well-being and undermining public trust in politics at both Holyrood and Westminster.

The study, Prosperity Begins at Home: Disruptions to Improve Scotland’s Housing System, calls for bold, sweeping policy reforms. It argues that housing has been wrongly treated as a narrow social issue, and advocates for an urgent shift in understanding, recognising that housing is critical economic infrastructure shaping jobs, wealth, climate progress, and wellbeing.

“Housing makes up a quarter of household spending and supports up to 15% of jobs,” said Professor Maclennan. “Without systemic reform, the housing polycrisis will worsen—locking young people out of homeownership and holding back Scotland’s prosperity.”

“We urgently need bold reforms, because if politics doesn’t change housing, the left behind places and left behind young Scots at the brunt of the housing polycrisis will change politics.”

The Way Forward

Scotland cannot solve its housing crisis with piecemeal measures. It requires bold, system-wide reform to:

• Treat housing as economic infrastructure.

• Align policy with net zero, economic growth, productivity, and fairness goals.

• Mobilise non-profits, private sector partners, and regional authorities as delivery agents.

• Commit to ending homelessness through both housing reform and cross-sector public health approaches.

• Step-change in investment in all housing tenures.

Susan Murray, Director of The David Hume Institute who commissioned the report said:

“Scotland has overcome housing crises before through radical shifts. Today demands the same ambition. Business as usual, with a few small tweaks, will not deliver the change that is needed.  This report challenges everyone to work together to deliver fundamental change so the housing system can better support people and the economy.”

Calum Murray, Director of CCG (Scotland) Ltd, who part-funded the research said: 

“This report brings much-needed clarity to Scotland’s housing debate. It sets out, with strong evidence, how housing must be understood not just as a social issue but as critical economic infrastructure.

“By connecting affordability, supply, climate goals, and productivity, it offers a practical framework for action. The challenge now is to use these insights to shape policy and delivery so that Scotland can provide the safe, sustainable, and affordable homes needed.”

ENDS

Notes to Editors

• About Professor Duncan Maclennan: Duncan was a member of the Board of Scottish Homes from 1989 until 1999 and then spent a decade working in government, as special Adviser to the First Minister of Scotland, as a Chief Economist in the Government of Victoria and as Chief Economist in Canada’s Federal Department for Infrastructure and Cities. He has acted as adviser to Ministers in the UK, Scotland, France, Poland and Norway, Canada, Australia and New Zealand.  He is a fellow of the Royal Society of Edinburgh, the Academy of Social Sciences and Honorary Member of the Royal Town Planning Institute, The Chartered Institute of Housing and the Royal Institute of Chartered Surveyors. He was awarded a CBE for services to UK housing research in 1997. He remains affiliated to the University of Glasgow as an Emeritus Professor of Urban Economics and holds Professorial appointments in Housing Economics at McMaster University (Ontario) and UNSW (Sydney).

• The CCG Group is Scotland’s most innovative construction and manufacturing company, Building Futures for over 50 years. Find out more about CCG (Scotland) Ltd.

Press release: Siloed land information is STILL holding back Scotland

A report published by the David Hume Institute in 2023, written by land reform expert Andy Wightman, said the lack of a fully functioning land and building information system is holding Scotland back - and it still is.

Although Scotland has a considerable amount of information on land and buildings, a Scottish Government commitment in 2015 to deliver a comprehensive Scotland Land Information Service (SCOTLIS) has still not been met.

Information about land and buildings is used everyday by businesses, policy-makers, academics and ordinary people. This information includes who owns land, how much land is worth, building types and energy efficiency ratings, vegetation cover and flood risks areas. 

All of this information exists in some form, however much of it is not easily available and virtually none of it is made available in an integrated form. 

A fully functioning land and building Information system in Scotland would enable users to quickly and easily access information about any piece of land or property in Scotland through a single online source. This will allow for simplified property transfers, better policy and decision making, improved accountability and transparency, and more innovative use of data for wider social and economic benefit. 

There are challenges to overcome but failing to rise to the challenges means Scotland is not reaping the benefits other countries are seeing from similar work. 

Andy Wightman, author of the report said: “Two years ago I said: a new, fully functioning version of Scotland’s land information system could be in place by 2025 if there was the political will to make it happen. In the past, lack of political leadership failed to establish the governance framework necessary to deliver the ambition for Scotland so the land and building information system remains a vital missing link. Well it is now 2025 and a land information system is still a vital missing link”

Susan Murray, Director of the David Hume Institute said: 

“This report shone a light on the potential of a land and building information system for Scotland. This is essential infrastructure to support the modern economy and energy transition. The ground work has already been done, it just needs everyone to roll up their sleeves and make it happen for everyone’s benefit.”

Euan Leitch, Director of Scotland's Regeneration Forum said:

“Obtaining information about buildings can be extremely time consuming.  By bringing together information from different sources, it will be quicker for everyone to access land and building information.  We need a concerted effort to ensure Scotland does not get left behind internationally as other countries are already benefiting from advances in data processing and mapping technologies. As the impacts of climate change intensify, there is even greater need for more timely, more comprehensive and more accessible information about land and buildings in Scotland.”