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My Bill makes it a requirement for businesses who accept English notes to accept Scottish ones too, unless they have reasonable belief that they are not genuine.
David Mundell, January 21 2009
Scottish banknotes should be as acceptable as English ones in shops and businesses throughout the UK under a Bill proposed by the Conservative shadow Scottish secretary, David Mundell.
He told the Commons that despite their different appearance: "There is no difference in the financial value of Scottish notes."
He said three Scottish banks - the Bank of Scotland, RBS and Clydesdale - currently issued a core of 16 note designs. This was a "vivid example of how Scottish culture can flourish" within the UK.
Mundell told MPs there were £3bn worth of Scottish banknotes in circulation, and claimed his Bill would help to strengthen ties across the UK.
He said: "Despite what the Scottish national party might try to convince this House, there are few genuine grievances in Scotland about the union with England.
For the Liberal Democrats, David Heath said there had been "confusion" over the amount of different notes in circulation.
Intervening, Treasury exchequer secretary, Angela Eagle said there were 22 different sorts of Scottish banknote and 17 kinds of Northern Ireland banknote, not including commemorative editions.
For the Conservatives, Greg Hands welcomed the Bill, saying there were widespread misconceptions about the acceptance of Scottish banknotes.
"It's about time their acceptability in shops and restaurants was given some legal recognition," he said. There was no reason for anyone to have doubts about the notes.
Eagle said she understood how "potentially embarrassing, inconvenient and annoying" it could be to have Scottish banknotes refused.
But she added: "I am sceptical that the legislative vehicle is the best way to solve this problem."
The UK was "highly unusual" in allowing a number of commercial banks to issue banknotes and the Government was committed to maintaining this long standing tradition.
"Before we resort to the legislative sledgehammer we should think about whether we can put in place a campaign that would enable and encourage retailers to become more familiar with different sorts of banknotes."
Eagle said changes due to come into force later this year would confirm that Scottish notes were "risk free" and had the same backing as Bank of England notes.
Progress
House of Commons
First reading: January 21 2009 [HC Bill 16]
Second reading:
- 1st day: March 6 2009
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