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Most Scottish industry and commerce is concentrated in a few large cities on the waterways of the central lowlands. Edinburgh, on the Firth of Forth, is a cultural centre, the capital of Scotland, and one of the the top financial centres in Europe. Glasgow, one of the largest cities in the UK, lies on the Clyde; it is Scotland's leading seaport and was once a centre of shipbuilding and it supports numerous light industries. Although heavy industry has declined, the high-technology Silicon Glen corridor has developed between Glasgow and Edinburgh. Tourism is also very important.

At one stage, Scottish peers were entitled to elect sixteen representative peers to the House of Lords. In 1963, the Peerage Act was passed, allowing every Scottish peer to sit in the House of Lords. However, since the current Labour government's reforms of that house this is no longer the case and hereditary Scottish peers have to stand for election from amongst all eligible peers to sit in the house as part of a group of 92 entitled to do so.

In 1468 the last great acquisition of Scottish territory occurred when James III married Margaret of Denmark, receiving the Orkney Islands and the Shetland Islands in payment of her dowry.

A number of other Christian denominations exist in Scotland, amongst them Roman Catholicism, which made a comeback through immigration from Ireland, after Protestants brutally repressed it during the 16th to late 18th centuries. It has now become the largest faith after The Kirk. As well as The Kirk we find various other Protestant churches, including the Scottish Episcopal Church, which forms a full part of the Anglican Communion, and the Free Church of Scotland, a Presbyterian off-shoot from the established Church of Scotland.

Scotland retains its own distinct sense of nationhood. Academic research consistently shows that people in Scotland feel Scottish, whilst not necessarily feeling the need to see that translated into the establishment of a fully-independent Scottish nation-state.

This state of affairs continued until May 1999 when Scotland's Parliament was established following a referendum. Whereas the old Scottish Parliament had functioned as the full parliament of a sovereign state, the new parliament governs the country only on domestic matters, the United Kingdom Parliament having retained responsibility for Scotland's defence, international relations and certain other areas.

Church of England broke with Catholicism primarily for political reasons. Thus they replaced very little traditional Catholic theology, except to substitute the Crown for the Pope as the head of the Church. The Scots on the other hand were primarily Presbyterian, a movement which was the result of a strong theological rejection of certain Catholic teachings. In particular they were sceptical of the authority of the Pope and priesthood generally, which they rejected in favour of the priesthood of all believers. This doctrine was seen by both sides as radically undermining the authority not just of the priestly class, but of the aristocracy since it was essentially democratic.