Retailers to welcome new polymer banknotes

Future 10 pound and 5 pound banknotes will be printed

on polymer, a thin flexible plastic film instead of cotton paper and be in use by 2016, announced The Bank of England earlier this week.

This decision was the result of a three-year research programme issued by the Bank studying the materials on which banknotes are printed. The research findings reflected good reasons for polymer printing, such as showing that polymer banknotes are more resistant to dirt and moisture than paper banknotes. The investigation also found that polymer banknotes were more secure, incorporating additional security measures therefore making them hard to counterfeit and are more durable, lasting 2.5 times longer than paper banknotes in circulation, which is good news for retailers and consumers alike.

The Bank of England held a programme of public consultation over the course of two months to test public confidence in the new bank notes before moving ahead with the decision. Nearly 13,000 members of the public gave feedback, and 87 percent of those who responded were in favor of the polymer, 6 percent were against the new banknotes and 7 percent were neutral.

Polymer banknotes more environmentally friendly and cost-efficient

Helen Dickinson, director general at the British Retail Consortium said: “We very much welcomed the consultation and the opportunity for our members to contribute our expertise. The retail sector and Bank of England have a strong track record of working together to ensure the smooth and effective transition of new notes into our businesses.” The BRC stated that British retailers have welcomed the Bank's decision to print new notes on polymer.

The new polymer notes will look similar to the current Bank of England notes and retain the portrait of Her Majesty the Queen and a historical character. They will be a little smaller than current existing paper notes, to make them more convenient for every day use and easier to fit into cash handling technology. The smaller notes will also reduce printing and storage costs.

The first polymer banknote to be released will be the 5 pound note, featuring Sir Winston Churchill and will be issued in 2016. A year later, the 10 pound polymer note will be issued with the portrait of Jane Austen. The Bank of England have developed a education programme, which includes information about the new security measures for the authentication of the new banknotes and details of how the current 5 pound and 10 pound banknotes will be taken out of circulation.

Over 25 countries currently use polymer banknotes, including Australia, New Zealand, Mexico, Singapore, Canada and most recently Mauritius and Fiji.