Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that Scottish banknotes are treated as legal currency by businesses operating in England.

The UK is unusual in allowing several commercial banks to issue their own banknotes. As well as Bank of England issued notes, authorised banks in Scotland and Northern Ireland issue banknotes in those jurisdictions. However, it remains the individual retailer’s choice whether to accept or decline any form of payment, including cash or card, based on their consideration of factors such as customer preference and cost.

Legal tender status does not oblige businesses to accept a particular form of payment in everyday transactions. This stems from legal tender having a narrow technical meaning in UK law, specifically referring to what constitutes a valid payment of debt in court proceedings. If a debtor pays into court in legal tender, they have a good defence against a claim for non-payment.

More broadly, the Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses who choose to use it. In recognition of this, the Financial Services and Markets Act 2023 introduced safeguards to protect the public's access to cash.