Drug abuse costing Scotland almost £6 billion a year, think tank finds

Drug abuse could be costing Scotland almost £6 billion a year, a new report has warned.

Ministers have been told that the “price of inaction is too high to ignore” as research by the Social Market Foundation set out the financial impact of the country’s drugs crisis.

It has called for a rollout of safer drugs consumption rooms, such as the Thistle Centre pilot in Glasgow – which was the first of its kind in the UK.

The think tank said these should be “rolled out to areas of greatest need”, adding that drug checking services, which are currently being trialled, should also be expanded.

The report comes a week after figures published by the Scottish Government showed suspected drugs deaths rose by 8% last year.

There were 1,146 people suspected to have died from drugs in 2025, up from 1,065 the previous year.

Research by the Social Market Foundation think tank has now found that drug abuse in Scotland costs the public sector up to £1 billion a year – approximately two thirds of what the country spends on all mental health care.

This includes £220 million on healthcare and drugs services, and up to £320 million on the crime and justice sector.

The think tank added that the impact on GDP, from unemployment and reduced productivity, was estimated to be £1.2 billion.

With wider societal costs amounting to as much as £3.5 billion a year, it said the total social and economic cost of drugs abuse amounted to £5.7 billion annually.

The report said: “These figures strengthen the case for action, demonstrating that alongside the profound human and community costs there is also a strong economic argument for change, and an effective response would mitigate many of these costs.”

Jake Shepherd, a senior researcher at the Social Market Foundation and one of the reports authors, made clear action was needed from the Scottish Government.

He said: “Scotland’s drug crisis is nothing short of a tragedy, and no argument for change is more compelling than the human cost.

“Our research shows the issue is also economically unsustainable. While the Scottish Government has made meaningful attempts to address the crisis in recent years, it must go further and faster.

“Drug harms are avoidable, and a more effective response could reduce these impacts. The price of inaction is too high to ignore.”

As well as recommending the rollout of both drug checking services and safer drug consumption facilities, the report said that the use of naloxone – which can reverse some drugs overdoses – and needle exchange programmes should be continued.

The report made clear that both these “reduce drug-related harms and are cost-effective” adding that while there is already “strong” coverage of such services, it added that these “could be expanded further”.

Looking at drugs consumption facilities, the report said “evidence shows safer drug consumption facilities improve health outcomes, support access to wider healthcare services, and can offset wider public costs”.

However, when it comes to expanding such facilities it stressed that “community concerns should however be considered, with location and expected usage carefully planned to maintain public support”.

With the report stating that residential rehabilitation can be “highly effective” in tackling drug abuse, the report said ministers must ensure targets for this are met, and that placements are “sufficiently long to be effective”.

Mr Shepherd stated: “For years, Scotland has recorded the highest drug death rate in Europe, with thousands of lives lost.

“Behind these figures are real people, with profound consequences not only for those who use drugs, but also for their loved ones, neighbourhoods, and wider society.”

With Holyrood elections taking place in just over six weeks, he added that the next Scottish Government should “act on these findings to reduce harm, reverse drug deaths, and improve the wellbeing of future generations, while supporting people who use drugs to live healthy and meaningful lives”.

Drugs and alcohol policy minister Maree Todd said: “We welcome this report which highlights the scale of the financial costs of drug harms.

“Our focus is on the human cost. Every drug death is a tragedy and my condolences go to anyone who has lost a loved one.

“Earlier this month, we published a new long-term alcohol and drugs strategic plan which is backed by record funding and builds on our five-year national mission on drugs which ends in April.”