Phasing out of Scottish banknotes in Scotland

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81868307#Comment_81868307

Reasonable bit of reporting, the relevant bit being that the rate of decline of Scottish notes in circulation is four times that of "English branded" notes (16% vs 4%) in the period 2020-25.

Although that's by value, maybe a 'better' number would be the actual number of notes in circulation.

WillPS

https://forums.moneysavingexpert.com/discussion/comment/81868299#Comment_81868299

In that case it's not hard to see why the banks want out, as they'll be losing 10p or so with every new note they pass out vs handing out a Bank of England note. I can't see that anywhere near that will be recoverable through marketing exposure.

Maegi

https://forums.moneysavingexpert.com/discussion/comment/81867683#Comment_81867683

As others have already indicated, this means very little in terms of longevity.

Clydesdale did not even bother to issue a polymer £50 note when they used to issue £50/£100 notes.

Section62

https://forums.moneysavingexpert.com/discussion/comment/81868903#Comment_81868903

Who knows.

But if Nationwide have any strategists involved in their plans then highlighting this issue as they have wasn't the wisest idea.

WillPS

Even if that statement was a commitment, and I agree with @Maegi that it was not, then they could technically satisfy that by just issuing a few bank notes as a token gesture rather than putting any particular amount in to circulation.

M25

The Daily Record? I'd say that was a London Lackey newspaper.

I'm in Scotland I've not seen any English notes yet.

I doubt there'd be too much of a real fuss if Scottish notes disappeared all the banks are England-based/international owned the last I looked.

Virgin Money owning Clydesbank Bank made me feel a little bit sick. How disgusting. That rancid Branson tax exile having his name linked to the bank? Wow.

Being realistic though the CB (and others) have been a toy for years for other banks to own. Like a cat with a mouse.

PaulW922

https://forums.moneysavingexpert.com/discussion/comment/81867992#Comment_81867992

There is a small cash flow advantage to the Scottish (and NI) banks, but not a huge one. Every Scottish or NI bank note issued must be backed by a deposit in that bank's account at the Bank of England. So for every Scottish £5 note there must be £5 on deposit at the BoE - if that were not the case then the commercial banks could in theory run riot inventing lots of new money (pause to roll eyes!). However, there is a de-minimus limit - I am unclear how much, where the commercial banks do not need to have an equivalent amount deposited. I doubt it is much though.

Virgin Money is a trading name of Clydesdale Bank PLC so remains a Scottish bank even though the holding company is incorporated in E&W. Whether that will change we will see soon. It would be a shame if Scottish and NI bank notes disappeared altogether although they can be difficult to spend in E&W. (I once had the Post Office in Basingstoke refuse my Scottish bank notes for deposit into my (Clydesdale) bank account on the grounds that there are a lot more forgeries about. I complained to Post Office head office and they back up that quite outrageous statement).

TimeLord1

Well, there can't be too much resistance. They could be using the euro notes. I don't know if losing anything is a good thing. Rare to see Scottish notes down south, but maybe they'll become collectable now. 😉

flaneurs_lobster

However, there is a de-minimus limit - I am unclear how much, where the commercial banks do not need to have an equivalent amount deposited. I doubt it is much though.

Roughly £3M, across the three Scottish issuers. They have approximately £3B in circulation.