Well after looking around the net for the last few hours I have found this http://news.bbc.co.uk/1/hi/scotland/3649307.stm and this makes for good reading

 

Inflation surge Most of the Scottish currency is backed by holdings of Bank of England notes, but the banks are allowed to issue an additional sum equivalent to the notes and coins in circulation in 1845.

 

At £3m, this figure now represents a very small proportion of the value of all Scottish banknotes.

Elsewhere in the UK, the surge of inflation in the 1970s sealed the fate of the pound note.

It had become worth too little to justify the costs of printing notes which had a much shorter life than coins.

The initial move from paper was kick-started with the minting of more than 400m pound coins in 1983.

Made from a nickel-brass alloy, each of the new coins added 9.5g in weight to pockets and purses.

In 1997, it was joined in general circulation by the even-larger £2 coin.

 

For major retailers with branches throughout the UK, the pound note is only likely to be presented in their Scottish outlets.

But they appear to be happy to continue larger quantities of paper money in Scotland.

Elinor Jayne of the Scottish Retail Consortium said: “Retailers will accept customers’ money in whatever form.

“As long as customers want to use paper notes, retailers will be happy to accept them.”