Keeping money local: Glasgow

Getting support to people, and keeping spend in the community

When the cost-of-living crisis hit in 2022, local authorities across Scotland were looking for ways to get financial support to low-income households – quickly and fairly. At the same time, town centres and local businesses were still finding their feet after the pandemic. Glasgow City Council found a way to tackle both problems at once, using the Scotland Loves Local Gift Card as the mechanism.

What is the Scotland Loves Local Gift Card?

Launched in 2021 and led by Scotland’s Towns Partnership with support from the Scottish Government, the Scotland Loves Local Gift Card is a pre-loaded spending card tied to a specific local authority area. Each of Scotland’s 32 council areas has its own dedicated card, and crucially, the cards can only be spent with local businesses registered to accept them – not with online retail giants or out-of-area chains.

That’s what makes them different. The card combines well-known high street names with independent local businesses, giving recipients genuine choice while keeping spend circulating within the local economy.

Glasgow City Council’s unique approach

In the summer of 2022, Glasgow City Council distributed Scotland Loves Local Glasgow Gift Cards worth £105 to 85,000 low-income households – those in receipt of a Council Tax Reduction. Funding came via a £9.45 million Covid Economic Recovery package awarded to the council by the Scottish Government. There was no application process: entitlement was automatic, with households identified through council tax data and gift cards delivered directly to their homes.

More than 700 businesses – including shops, places to eat, salons, and visitor attractions – signed up to accept the cards. Recipients could spend on food, clothing, household essentials, or family activities; whatever they needed most.

The results

One year on from the cards being distributed, over £7.59 million had been spent in Glasgow businesses. That’s a substantial, measurable injection into the local economy –  money that, under a different model, might have gone to an online retailer with no connection to the city.

For businesses, the impact was tangible. Many reported that word of mouth quickly brought card holders to the door and the process for businesses to sign up was simple and straightforward.

Why this approach works

Two things stand out about how Glasgow used the gift card. First, the practicality: because eligibility was determined automatically through existing council tax data, the right households received support without having to navigate an application process. That’s important – as it removes barriers and ensures the people who need help most actually get it.

Secondly, and perhaps just as importantly, it is a fair and dignified process. Because the Scotland Loves Local Gift Card is widely available for anyone to buy and use, recipients could spend their cards without being identified as receiving financial support. As Scotland’s Towns Partnership noted at the time, it’s a card that lets people spend with dignity.

Takeaways…

If you’re a local authority looking for a practical way to direct support to lower-income residents while keeping money on the high street, the Scotland Loves Local Gift Card offers a ready-made mechanism. It’s now been used as a vehicle for numerous sectors – by Universities, the NHS, local authorities, and as a disbursement vehicle for funds generated by local wind farm agreements. The infrastructure already exists, there’s a card for every local authority area in Scotland, and the Glasgow experience shows it can be delivered at scale and at pace.

For businesses, registering to accept the card is straightforward and opens you up to a wider pool of local spend. And for community organisations, it’s worth knowing this tool exists and advocating for its use when councils are looking at how best to deploy financial support.

The lesson from Glasgow is simple: when public funds are used thoughtfully, they can do more than one job at once – supporting people, strengthening businesses, and building a more resilient local economy at the same time. For more information, visit lovelocal.scot/giftcard.