Tier 7/8 should definitely not have the scouting budget to scout the whole of England (which is the 87.5K package).
Within the game, Vanarama National sides Bromley, Solihull only have 25K budgets which means they can only scout their division (package is 17.5K). Next package up is 52.5K.
In reality tier 7/8 will have very low scouting budgets but for the purposes of the game (and to ensure these clubs can do some form of scouting) their budgets should probably be set to the lowest none zero package, i.e. something like 20K. This will ensure they can scout players from their own division (on the 17.5K package).
So, I'd set it to 20K so at least you can cover the teams in your division but I think it would be really interesting to see what would happen if you set it to 20K (tier 7), 10K (tier 8), 5K (tier 9) and 0 (tier 10) so basically you'd have to manage your budget because you wouldn't be able to scout all year round and therefore more dependent on staff recommendations etc. At the moment tiers 10, 9 and 8 are just too easy (and you often get promoted first time around) because you can just get in the best players. Having a small (or no) scouting budget should make the game more of a challenge.