Butterscotch does not appear to be significantly connected with Scotland, but may derive from the word 'scorch'. The word was first recorded in Doncaster where Samuel Parkinson began making the sweet in 1817. In 1961 his company was acquired by Holland's Confectionery, and ceased production in 1977, though the name was revived in 2003.
'Housewives Corner' in the 'Liverpool Mercury' on Tuesday 1 February 1848 says that; "The real receipt for making Doncaster butterscotch, is one pound of butter, one pound of sugar, and a quarter of a pound of treacle, boiled together."
Sheffield Independent - Saturday 20 December 1851