Chancellor Rishi Sunak set to protect future of cash

The Chancellor of the Exchequer Rishi Sunak will commit to new laws protecting the use of cash in this week's budget.

One area being looked at is whether to give watchdogs new powers that could force banks to continue to provide notes and coins to customers who need them. The Treasury also wants the banks to create a new system for moving money around the country.

Debit cards overtook cash as the most common payment method in the UK in 2017, and its usage is forecast to fall to only 9% of transactions by 2028. Nonetheless, millions of people still rely on it.

“The banking and finance industry recognises the importance of ensuring cash remains free and widely available in an increasingly digital society, and we look forward to engaging with the government and regulators on the proposed legislation,” says UK Finance Chief Executive Stephen Jones.

“As acknowledged by the Treasury, the industry has already introduced a number of measures to secure free access to cash, including providing banking services via local post offices and protecting free-to-use ATMs in more rural and remote areas.”

“However, there is no ‘one size fits all’ approach and understanding the needs of local communities is critical. That is why UK Finance supports the new Community Access to Cash Pilots initiative which aims to help local communities develop and support access to cash solutions which work for them,” he concludes.

Cashless stores

Tesco recently opened its first cashless store, situated in High Holborn, London.

Shoppers are able to use the likes of contactless cards, Tesco Pay+ and Apple Pay at self-service tills. Staff will be on hand to help. This builds on a cashless store trial at a staff-only branch in Welwyn Garden City, Hertfordshire.

Retail analyst Bryan Roberts went to see what all the fuss was about. He reported that the store was being well received by the majority of customers.

“Shopper throughput at peak times has been reduced and only about five shoppers a day find the cashless aspect to be a dealbreaker,” he said in a LinkedIn post. “Won’t suit every location in London (especially not in tourist areas) but wouldn’t be surprised to see more of these in the future.”