Plan to make Scottish banknotes Legal

by mudricky | January 21, 2009 at 04:45 am

808 views | 44 Recommendations | 18 comments

Shadow Scottish Secretary David Mundell is attempting to make Scottish banknotes legal in England and Wales.

Right now people can refuse to accept them.

Scottish banknotes are strange, they do not have legal status anywhere in the UK and if the bill is passed they will become legal in England and Wales but still not be legal in Scotland.

Scottish banks, the Royal Bank of Scotland, the Bank of Scotland and the Clydesdale Bank all issue Scottish banknotes.

Click here to see a similar story from me writing about the legal staus in the comments section

An attempt is to be made at Westminster to make it legally binding for shops and businesses in England to accept Scottish banknotes.

At the moment traders south of the border can refuse to take such notes.

A private member's bill is being launched in the Commons by Shadow Scottish Secretary David Mundell.

It would require all providers of goods or services in the UK which accept Bank of England notes to take Scottish banknotes on an equal basis.

In Scotland, three banks retain the right to print their own money - the Royal Bank of Scotland, the Bank of Scotland and the Clydesdale Bank.

These banknotes are not backed by the force of law anywhere in the UK.

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generaldecay

at 10:32 on January 21st, 2009

This annoys me so much! Scottish banknotes are completely legal and are part of sterling currency. I was in Scotland last weekend and I had to make sure that I didn't come back to England with any Scottish notes because no one takes them here. I have the same problem when I come back from Northern Ireland. It's very stupid and very frustrating.

Amy Judd

at 10:35 on January 21st, 2009

It does seem so silly as Scotland is part of the United Kingdom - they are rather pretty as well.

Sarathine

at 12:38 on January 21st, 2009

Scottish banknotes are definitely prettier. I back this.

downwithgod777

at 22:49 on January 21st, 2009

downwithgod777 has contributed a photo to this story.

Dave Keating

at 00:44 on January 22nd, 2009

interesting news! I once had a shopkeeper refuse to take a Scottish note

mudricky

at 01:41 on January 22nd, 2009

I normally get a look of disgust. :)

It's only Manchester where I've never been knocked back for using Scottish cash.

aberdeen_sandra

at 02:43 on January 22nd, 2009

Discrimination at its worst, after all legal tender is legal tender. It doesn't just affect us Scots when we go south, it gives visitors a headache trying to off-load the notes before they go home!

Darky1564 (not verified)

at 10:52 on April 2nd, 2009

You have just missed the point - they are NOT legal tender!

smallmanl

at 03:14 on January 22nd, 2009

Can't we just eject Scotland from the Union, and they can keep their blasted notes?

Mark Bermingham

at 14:01 on January 25th, 2009

Scottish notes are a part of Scotland's unique appeal to both its residents and visitors. Given the unique banking climate we are currently living in where the Westminster Government "owns" a significant proportion of a number of Scottish banks and hence shares the responsibility for their production it now seems illogical that they are not fully recognised in all parts of the Union as legal tender.

Mark Bermingham has contributed a photo to this story.

Prestwick

at 10:32 on February 2nd, 2009

This is a photo of when I first went to Scotland for University and set eyes on Scottish bank notes. They were a constant source of frustration when I came back home to England because I'd end up having arguments with London Underground who were loathe to take them!

Prestwick has contributed a photo to this story.

158

at 12:21 on February 2nd, 2009

I thought they were legal.

They should be.

But isn't most trade done in Euros now?

generaldecay

at 12:52 on February 2nd, 2009

158, they're not illegal in the sense of the word, they're just not recognised as 'valid currency' in England and Wales. The are as valid a currency as any other and I've never quite got to the bottom of it all.

mudricky

at 13:29 on February 2nd, 2009

Coins are legal tender all over the UK, Bank of England banks notes are legal tender in England and Wales, not in Scotland or Northern Ireland.

Scottish Bank notes have no legal status anywhere in the UK... so technically speaking, Scotland has no legal tender bank notes.

generaldecay

at 22:56 on February 2nd, 2009

I think that's incorrect, mudricky. Bank of England notes can be used anywhere in England, Wales, Scotland and Northern Ireland. Scottish bank notes can be used in Northern Ireland and vice versa. The only place that Northern Ireland and Scottish bank notes cannot be used is England. However, if you force your point here, in a shop for example, they will accept them. Because they have no viable reason not to accept them.

mudricky

at 00:04 on February 3rd, 2009

I though the same but I looked into it for an older story I wrote. There is a link at the top of the page.

Here is what I found. Have a read and tell me what you think generaldecay.

Are Scottish & Northern Irish notes legal tender?

In short ‘No’ these notes are not legal tender; only Bank of England notes are legal tender but only in England and Wales.

The term legal tender does not in itself govern the acceptability of banknotes in transactions. Whether or not notes have legal tender status, their acceptability as a means of payment is essentially a matter for agreement between the parties involved. Legal tender has a very narrow technical meaning in relation to the settlement of debt. If a debtor pays in legal tender the exact amount he owes under the terms of a contract, he has good defence in law if he is subsequently sued for non-payment of the debt. In ordinary everyday transactions, the term ‘legal tender’ has very little practical application.

The Committee of Scottish Clearing Bankers (CSCB): Scottish Banknotes Legal Position

The majority of banknotes circulating in Scotland are issued by Scottish banks. Scottish notes circulate and are accepted quite freely in Scotland and, for the most part, they are also readily accepted in England & Wales, although branches of Scottish banks there may not issue them. However, you should not rely absolutely on Scottish notes being accepted outside Scotland and this is particularly true when travelling abroad. Our general advice would be not to carry large amounts of banknotes of any description and to make use of facilities such as travellers’ cheques, credit/debit cards and ATM cards for access to funds whilst abroad.