Blog: The business of sleep
by Susan Murray, Director, David Hume Institute
25th May 2022
One in four people are already losing sleep over their finances and the cost of living crisis hasn’t fully hit yet.
This is bad news for people’s health and the economy. The long term health implications are well known for individuals living in a state of acute stress, with lack of sleep increasing the risk of health conditions such as obesity, heart disease and depression. Relationships suffer and the likelihood of family breakdowns increase.
These negative effects cause short and longer-term harm to the economy, as well as increasing public health costs. Lack of sleep affects your ability to make decisions and reduces productivity.
The cost of living crisis is already affecting individual lives and our research shows worrying signs for business too.
70% of people have already cut back spending on anything that isn’t essential. With the majority of Scotland’s business being small and medium sized, this reduction in spending will have a big impact.
Business leaders also have Brexit, labour and skills shortages, higher energy costs and supply chain issues to manage. Some have enjoyed unprecedented profits in recent times but others haven’t yet recovered from the pandemic. There are tough times ahead for many businesses in Scotland and for some, there isn’t any slack in the system.
It is understandable that many are calling on the UK treasury, bolstered by increased tax receipts, to step in swiftly with a basket of interventions aimed at reducing the length and depth of the recession. In the long term we need to create more resilience in the system, but with an increasing number of people experiencing hunger and struggling to heat their homes, looking to the long term now feels like a luxury.
Whilst the big actions rest with government, if you have money and are not on the breadline, are you thinking about the impact of your spending or charitable giving?
Making conscious choices with money - a priority people told us last year as part of the Action Project, is now even more important.
With so many people in work using foodbanks and skipping meals - work is clearly not a guaranteed way out of poverty. If you employ people, what support are you offering the lowest paid in the organisation? Big employers like John Lewis are openly speaking about the range of measures they have put in to help their lowest paid staff.
In small businesses it can be harder to offer holistic support to employees - and we have thousands in Scotland. For small businesses cash flow is often critical for keeping their heads above water. Although only a drop in the ocean in terms of the issues facing small businesses, paying invoices on time can make a big difference and saves hours of time chasing up payments.
Some rules are making it harder for those that are struggling most, and here regulators have a role to play. For example higher standing charges for prepayment energy customers. I can understand Martin Lewis’s anger at Ofgem - it seems as though our energy market is in desperate need of an overhaul.
The Understanding Scotland - Economy research shows the cost of living crisis is already affecting the majority of people in the country - a minority have savings and a cushion for the hard times ahead. Let’s hope the pending announcement from the Treasury does something rapidly to help or the prospect of a peaceful night’s sleep is a long way off for many people.
