It varies in Fife. (Born and brought up there. Still live there.) I'm in my 60s. All of the following refers to m experiences here.
On the one hand, I've heard people using the P word. On the other hand, I was scolded by a high school pupil one time, because I mentioned buying something from - wait for it - "the corner shop" and was told that I was being racist.
I recall trying to explain to said pupil why she was mistaken.
I've also had to explain to kids that it's not correct to say "coloured" when they were genuinely trying to say the "right" thing - but they were brought up by folk who said much worse and think that they're being "polite".
Many, many years ago I had to tell a girl that she couldn't write "d-rkie" in a piece of descriptive writing. She was shocked at me. "But Miss! A cannae right ngger!"
I recall hearing the word "d-rkie" being used a lot in the '60s and '70s. As a teenager, I recall hearing a "joke" that hinged on the protagonist trying not to call on his pet dog in front of a black gentleman, because it was called "D-rkie". Thought that it had died out, but my teaching experiences tell me otherwise.
I also recall teaching someone whose nickname was "Pikey". Tried to tell his schoolmates that they shouldn't use that. "That's what his mum calls him!"
I'm trying very hard not to out myself here. My mum was Scottish, but Dad was a white foreigner. I recall being called a "half-caste" when I was at high school in Fife.
ETA Some of the above has come out in bold because of my use of asterisks to censor words. Have tried to edit, but unsuccessfully.