Wednesday 11th September, 2013

The Bank of England is considering moving away from the traditional production of money to producing new bank notes on polymer (synthetic plastics) rather than the cotton paper as at present. A decision is expected as early as December this year.

The bank's research suggests that printing on polymer would bring considerable benefits to both the durability and quality of banknotes, while also enhancing the security.  The bank says that the polymer banknotes are more environmentally friendly and because they last longer are, over time, cheaper than paper banknotes.  Being thin and flexible they fit into wallets and purses as easily as paper banknotes. However, in Canada, where Bank of England Governor previously presided over a polymer transition, the public have occassionally been less than enthusiastic - preferring their "folding stuff" to actually fold.

The Bank has discussed the move to polymer with key stakeholders in the cash industry including retailers and financial institutions on the technical issues and impact of making the switch. The bank has also set-up public focus groups across the UK.

As part of a consultation programme, the bank will be hosting a number of events across the UK over the next two months. The programme will end on 15 November 2013 and the Bank’s final decision, in the light of feedback, will be announced in December 2013.

Commenting, Deputy Governor of the Bank of England, Charles Bean, said: "Polymer banknotes are cleaner, more secure and more durable than paper notes. They are also cheaper and more environmentally friendly.   However, the Bank of England would print notes on polymer only if we were persuaded that the public would continue to have confidence in, and be comfortable with, our notes. The results of the consultation programme on which we are embarking will therefore form a vital part of our assessment of the merits of polymer banknotes."