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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.

The Parliament is elected with a Proportional Representation electoral system, namely, the Additional Members System. This is unlike Westminster which is still elected by the First Past the Post method. It is elected every four years and contains 129 members (referred to as MSPs).

In 1326, the first full Scottish Parliament met. The parliament had evolved from an earlier council of nobility and clergy, the colloquium, constituted around 1235, but in 1326 representatives of the burghs — the burgh commissioners — joined them to form the Three Estates.

The Church of Scotland (often referred to as The Kirk) functions as the national church. It differs from the Church of England in that it has a Presbyterian form of church governance, not subject to state control. This goes back to the Scottish experience of reformation, initiated in 1560 by John Knox. The Scottish Reformation in essence took place at a grassroots level, and the Scots chose Presbyterianism as their method of church government. This differs from the situation in England, where Henry the Eighth personally unleashed the English Reformation and chose the Episcopal system that survives to this day in the Church of England.

Almost all residents of Scotland speak English, although many also speak various dialects of Lowland Scots which differ markedly from Scottish Standard English. Slightly greater than 1% of the population use Scottish Gaelic as their language of everyday use, primarily in the northern and western regions of the country. Almost all Scottish Gaelic speakers also speak fluent English.

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.

Before 1975 local government in Scotland was organised on the county system. In reforms that took effect from 1975, the Conservative government of Edward Heath introduced a system of two-tier local government in Scotland, divided between large Regional Councils and smaller District Councils. The only exceptions to this were the three Island Councils, Western Isles, Shetland and Orkney which had the combined powers of Regions and Districts. In 1995 the Conservative government of John Major decided to abolish this system and merge their powers into new Unitary Authorities, roughly equivalent to the old counties.