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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.

During the 1920s and 1930s, as ship-building and other industrial pursuits came to be more profitable outwith the British Isles, Glasgow and Clydebank slowly decayed and fell into economic depression.

Scotland has its own BBC services which include the national radio stations, BBC Radio Scotland and Scottish Gaelic language service, BBC Radio nan Gaidheal. There are also a number of BBC and independent local radio stations throughout the country. In addition to radio, BBC Scotland also runs two national television stations. Much of the output of BBC Scotland Television, such as news and current affairs programmes, and the Glasgow-based soap opera, River City, are intended for broadcast within Scotland, whilst others, such as drama and comedy programmes, aim at audiences throughout the UK and further afield. Sports coverage also differs, reflecting the fact that the country has its own football leagues, separate from those of England.

Scotland is one of the four constituent nations of the United Kingdom of Great Britain and Northern Ireland. The UK has no single written constitution document. Until the 1707 Acts of Union Scotland was an independent nation state. However, upon these acts coming into effect both Scotland and England's parliaments were dissolved and reconstituted as a parliament for all of Great Britain using the former English parliament's buildings and executive institutions. The Scottish and English crowns were unified in 1603 when James VI of Scotland became James I of England. In 1801 the Kingdom of Great Britain was unified with Ireland.

Scotland's territorial extent is generally that established by the 1237 Treaty of York between Scotland and England and the 1266 Treaty of Perth between Scotland and Norway. Exceptions include the Isle of Mann, which is now a crown dependency outside the United Kingdom, Orkney and Shetland, which are Scottish rather than Danish, and Berwick-upon-Tweed, which was defined as subject to the laws of England by the 1746 Wales and Berwick Act.

The traditional political divides of left and right have also intersected with arguments over devolution, which all the UK-wide parties have supported to some degree throughout their history (although both Labour and the Conservatives have swithered a number of times between supporting and opposing it). However, now that devolution has occurred, the main argument about Scotland's constitutional status remains between those who support Scottish independence and those who oppose it. Recent trends indicate, according to the State of the Nation Poll 2004, that 66% of Scots would like the Scottish Parliament to have more powers, while only 2% would like to see the powers returned to Westminster.

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.

Scotland's location on the north-western periphery of Europe did not mean the country had a small part in the Second World War. October 1939 saw naval bases in Scotland taking the first German attacks on Britain, both submarine and bomber attacks on Scapa Flow and raids on Rosyth which met with RAF fighters getting their first successes over Britain downing bombers into the Firth of Forth and onto East Lothian. The shipyards and heavy engineering factories in Glasgow and Clydeside played a key role in the war effort, and soon became targets for the Luftwaffe. The town of Clydebank in particular suffered great destruction and loss of life during the blitz. The Highlands again provided a disproportionate number of troops for the war effort. Many thousands of Commandos and resistance fighters received training in the harsh conditions of the Lochaber mountains.