Labour’s plan for the economy has suffered another major blow after a Scottish economy tracker has reported that most Scots expect things to go from bad to worse over the coming year.
The Understanding Scotland tracker details that 64 per cent of people polled in Scotland expect worsening economic conditions and fewer than one in 10 are optimistic about any sign of improvement.
The quarterly report published by the David Hume Institute and the Diffley Partnership says 62 per cent of Scots think the economic climate going into the 2025/26 financial year is worse than it was at the same time last year.
Despite the tracker showing Scotland’s predictions of economic gloom have decreased by a couple of points since the previous report, the persistent financial pressures on Scottish households has left no room for optimism.
The quarterly report published by the David Hume Institute and the Diffley Partnership says 62 per cent of Scots think the economic climate going into the 2025/26 financial year is worse than it was at the same time last year
PA
At the top of Scotland’s list of priorities are healthcare and the cost of living, the effects of which many believed would have lessened long before now.
Concern around the limitations and expense of Scotland’s healthcare has risen four points to 50 per cent, but more than one third (34 per cent) prioritised the overbearing weight of the cost of living as their chief concern.
More than half of Scots (52 per cent) say they are now cutting back on leisure activities and non-essential spending.
The result of the swirling negativity around Labour’s failed attempt to kickstart the economy is that 53 per cent of Scots now believe their country is off track from properly regaining control of its economy.
Susan Murray, director of the David Hume Institute described the findings as showing “the stark reality of life” for residents living in Scotland.
She said: “With so much talk about increasing growth at Westminster and Holyrood, many of the infrastructure investments that are hoped will drive growth are way down the line.
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At the top of Scotland’s list of priorities are healthcare and the cost of living, the effects of which many believed would have lessened long before now
PA
"The physical and mental health of Scots is being affected today, which will cost society more in the long run, through long-term health conditions and lower productivity. The promise of jam tomorrow is not easing financial stress today.”
Scottish Tories called the publication a "damning report” that only shows the“ depressing outlook Scots see for the economy”.
Craig Hog, Scottish Tory shadow finance secretary said Scots “have lost trust in Labour after their Budget of broken promises” and cited the additional pressures of SNP’s rising taxes for working people.
“That double whammy means Scots are being hammered by two left-wing governments,” he said, “when they are crying out to keep more of their hard-earned money and stop paying more, but getting less in return.”
The report was published on the third and final day of the Scottish Labour Conference at the Scottish Event Campus in Glasgow, as Keir Starmer took to the stage to deliver his keynote address.
Responding to the publication, Scottish Labour economy spokesperson Daniel Johnson said: “The Labour government is working hard to clean up the economic carnage the Tories left behind and kickstart economic growth across the country.
Scottish Labour leader Anas Sarwar too will need to move “further and faster” if he’s to make a more compelling argument for Labour when he runs to become Scotland’s next First Minister in 2026
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“The SNP cannot wash its hands of its responsibility to boost growth and create opportunities for Scots,” adding, ”this SNP Government has failed to use the economic levers it has to unlock Scotland's huge potential - and that is why we need a new direction.
“A Scottish Labour government would use every power at our disposal to strengthen Scotland’s economy and deliver a new direction – from reforming planning to overhauling skills to prioritising economic development.”
Speaking on Wednesday last week, Labour Chancellor Rachel Reeves said her “number one mission” was to put“ more pounds in pockets” after the Office for National Statistics confirmed another rise in inflation.
She said her Government was “going further and faster” to deliver her economic plan to boost growth, but the Understanding Scotland tracker shows UK Labour is a long way off from convincing the Scottish public.
Scottish Labour leader Anas Sarwar too will need to move “further and faster” if he’s to make a more compelling argument for Labour when he runs to become Scotland’s next First Minister in 2026.
