Government must act to end Scottish banknote anomaly - Bruce

4.22.04pm UTC (GMT +0000) Wed 30th Jan 2008

Malcolm Bruce has called on the government to provide legal protection for Scottish and Northern Irish banknotes; currently they are not required to be accepted anywhere in the UK.

The Liberal Democrats today increased pressure on the Government to provide Scottish banknotes with legal protection. Currently, there is no requirement for Scottish or Northern Irish banknotes to be accepted anywhere in the United Kingdom.

President of the Scottish Liberal Democrats, Malcolm Bruce, raised the issue during Scottish Questions in the House of Commons.

The following is a transcript of the proceedings during Scottish questions:

Malcolm Bruce: May I suggest that the Secretary of State impress on the Chancellor and the Governor of the Bank of England that it is high time Scottish banknotes were fully legally acceptable throughout the UK? They are authorised by the Bank of England and should have exactly the same status. If dollars and euros are acceptable to traders in England, surely Scottish notes can and should be, too. Will the Secretary of State endeavour to ensure that this anomaly is brought to an end?

Des Browne: I am delighted to have the opportunity to expand a little on the status of Scottish banknotes.

Andrew Mackinlay: And Irish ones.

Des Browne: And, indeed, banknotes from Northern Ireland. One of the great successes of the very successful financial services sector in Scotland is the privilege enjoyed by commercial banks to publish banknotes when other banks, including commercial banks in England, do not. The fact is that under the law Scottish banknotes enjoy exactly the same status as all other methods of payment throughout the United Kingdom, although that is not widely known. They are perfectly legal, and people should know and respect that. I know that on occasion some of my countrymen have had their banknotes refused, but I have been in London a great deal over the past 11 years, and in connection with my ministerial responsibilities have periodically had Northern Ireland banknotes in my wallet. No one has ever refused to accept one of them.

Commenting, Malcolm Bruce said:

"It is a bizarre anomaly that money can be withdrawn from Scottish banks and not accepted in England. Many shops in England now accept Euros, but can refuse to accept Scottish sterling.

"It is by historical accident that this separation exists. The Government must take action to ensure that Scottish banknotes are given proper protection."

ENDS