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Deeper political integration had been a key policy of Queen Anne (reigned 1702–14) and negotiations between England and Scotland led to a Treaty of Union being agreed in 1706. Thereafter, the parliaments of Scotland and England each approved Acts of Union that ratified the Treaty with the provisions of the Treaty being put into effect on May 1st, 1707 on which day political unification occurred with the two kingdoms being combined into a single kingdom and the two parliaments merged into a single parliament.
The circumstances surrounding Scotland's acceptance of the Bill are to some degree disputed. Scottish proponents of union believed that failure to accede to the Bill would result in the imposition of union under less favourable terms. Months of fierce debate on both sides of the border followed. In Scotland the debate on occasion dissolved into civil disorder, most notably by the notorious 'Edinburgh Mob'. The prospect of a union of the kingdoms was deeply unpopular among the Scottish population at large[8] but, following the financially disastrous Darien Scheme, the Parliament of Scotland reluctantly accepted the proposals. Financial incentives to Scottish parliamentarians also played their part in the vote.
Anne became formally the first occupant of the unified British throne and Scotland sent 45 MPs to the new parliament at Westminster. Perhaps the greatest single benefit to Scotland of the Union was that Scotland could enjoy free trade with England and her colonies overseas. For England's part, a possible ally for European states hostile to England had been neutralised while simultaneously securing a Protestant succession to the British throne.
The Acts of Union provided for the renaming of Scotland and England as 'North Britain' and 'South Britain' respectively. However, the change failed to take hold and fell into disuse fairly quickly. In England and abroad the terms 'England' and 'Britain' often continue to be used interchangeably, though this error is not mirrored in Scotland.
However, certain aspect of the former independent kingdoms remained separate. Examples of Scottish and English institutions which were not merged into the British system include: Scottish and English law which remain separate, as do Scottish and English banking systems, the Presbyterian Church of Scotland and Anglican Church of England also remained separate as did the systems of education and higher learning.