Skip to main content

How £50bn of banknotes have 'gone missing': Fortune in unaccounted cash is not being used in transactions or stashed in savings, new figures reveal

 

Banknotes  worth £50billion have gone missing in circulation, according to the National Audit Office
Banknotes  worth £50billion have gone missing in circulation, according to the National Audit Office

  • Banknotes worth £50billion have gone missing in circulation, according to the National Audit Office
  •  The NAO said it could be held overseas or  in savings that haven’t been declared
  •  The report on cash comes as the use of notes and coins has fallen  over the last decade

BANKNOTES worth £50billion have gone missing in circulation, according to the public spending watchdog.

The National Audit Office said the unaccounted cash was not being used in transactions or stashed in savings.

The watchdog’s report on cash comes as the use of notes and coins has fallen sharply over the last decade.

And it warns the bodies responsible for the country’s cash system need to work better together to ensure enough coins and notes are produced and circulated more efficiently to avert a crisis.

The NAO said the missing £50billion could be held overseas, used in the ‘shadow economy’, or held in savings that haven’t been declared. 


+1


In July 2020 the number of notes in circulation reached a record high of 4.4billion, with a monetary value of £76.5billion.

The Bank of England had estimated that 20 to 24 per cent of the value of notes in circulation were being used or held for cash transactions, with UK households holding a further 5 per cent as savings. Little is known about the remainder – worth about £50billion.

The report found there was enough cash being made to meet demand, but raised concerns over how it was being distributed.

Ten years ago, cash was used in six in ten transactions, but last year it was used in fewer than three in ten. Forecasts suggest it might be one in ten by 2028.

Covid-19 has potentially accelerated the decline. Industry data suggests market demand for notes and coins plunged 71 per cent between early March and mid-April. However, cash use appears to have been recovering as businesses have reopened.

Five public bodies – the Treasury, the Bank of England, the Royal Mint, the Financial Conduct Authority and the Payments Systems Regulator – all play a role in the cash system.

ut they lack a shared view of what was a good outcome for the consumer, the NAO said. It added that older people and those on low incomes are particularly likely to rely on cash.

In March, the Government unveiled legislation to protect access to it.

Labour MP Meg Hillier, chairman of the public accounts committee, said: ‘Too many people already have to go out of their way to get their hands on cash.’ The Treasury said: ‘We’re developing new legislation to ensure people can get hold of cash when they need it.’

Comments

Post a Comment

Popular posts from this blog

Kenyan student stabbed by her ex-boyfriend after she ended their relationship

                        Naomi Chepkemboi, a Third Year Public Health student at Pwani University, Kenya, was stabbed in the chest and neck by her ex-boyfriend Henry Kipkoech, who is a student at Kenyatta University, Nairobi. Ms Chepkemboi says she left her boyfriend in December last year because he was “irresponsible”. The two have a 4-month old daughter together. Speaking from her hospital bed in Kilifi County, Naomi Chepkemboi said Mr Kipkoech showed up at her rented room in Kilifi early Sunday, when he meted out the ugly attack on her. “He came to my room at 6am, and knocked on my door. I peeped through the window, and saw him. I went back to bed because I did not want to open the door for him. He pleaded with me to open the door, saying he came with an aim of restoring peace between us,” Chepkemboi told Citizen Television on Monday. “After much deliberation, I let him in. When we were done talking to each other, ...
Post a Comment
Read more

Scotland yard commander in charge of drug strategy is suspended over alleged drug misuse

                                           A Scotland Yard commander who led the force’s drug strategy and heads misconduct hearings has been suspended over allegations of drug misuse.   Commander Julian Bennett was secretly suspended last month following claims involving controlled drugs. It was reported that he was taken off duty after refusing to have a drug test following a tip-off about alleged substance abuse.    The veteran officer now faces an internal investigation by Scotland Yard’s directorate of professional standards, despite reports that part of his role in the force is acting as chairman in misconduct proceedings.   Nicknamed ‘Sacker,’ Mr. Bennett is well known for his stern rulings due to the number of officers kicked out of the force, having presided over hundreds of hearings since 2010, including some of the force’s most controversial invest...
Post a Comment
Read more

Dapchi girls: Abductors want to surrender ―Aisha Wakil

                      MEMBERS of the Boko Haram sect that have sent thousands to their untimely graves are ready to surrender, founder of the Complete Care Aid Foundation, Aisha Wakil, has said. Popularly called Mama Boko Haram, Aisha, however, said their apprehension was how they would be reintegrated into society. Her assertion came as parents of the 110 abducted girls of Government Technical College, Dapchi in Yobe State are losing their cool by the day as their children spent 13 days in captivity. In an apparent loss of confidence in the authorities, they have resolved to take their destinies in their own hands by forming the Dapchi Abducted Girls Parents Association. Wakil, who is a major negotiator for the sect, told Sunday Tribune that she could vouch for their readiness to drop their arms and embrace peace. “I was shocked, like every other Nigerian, as same history has repeated itself like Chibok girls. I enqui...
Post a Comment
Read more