There have been recent changes in the law relating to cash access
Wetherspoon changed its rules around cash payments last year(Image: Getty)
The Government has issued an update following Wetherspoon’s announcement of changes to its cash payment policies.
The pub chain decided in November 2024 to cease accepting Scottish £20 and £50 notes due to concerns over “criminal gangs” circulating counterfeit currency.
Liberal Democrat MP Angus MacDonald asked the Government what discussions it had held with the pub chain regarding “their policy on accepting Scottish banknotes in their premises in England”.
Treasury minister Lucy Rigby delivered the Government’s response.
She said: “There is no legal requirement for businesses to accept specific forms of payment. Each business decides which payment methods to accept based on factors including cost and customer needs and preferences.”
She went on to clarify that the Government has “no plans” to change the legislation on this issue. Nevertheless, she did point to some recent changes in the law concerning cash availability.
Ms Rigby said: “In recognition that millions of people continue to use cash, the Financial Services and Markets Act 2023 introduced safeguards to protect the public’s access to cash.”
The legislation grants new powers to the Bank of England to encourage wholesale cash distribution.
The minister went on to outline how the cash system operates. She said: “The UK is unusual in allowing several commercial banks to issue their own banknotes.
“As well as Bank of England issued notes, authorised banks in Scotland and Northern Ireland issue banknotes in those jurisdictions.
However, it remains the individual retailer’s choice whether to accept or decline any form of payment, including cash or card, based on their consideration of factors such as customer preference and cost.”
Why did Wetherspoon change its cash payments rules?
In explaining the decision to stop accepting Scottish banknotes, Wetherspoons spokesman Eddie Gershon said: “We were notified by the Bank of England last October that a large number of fake Scottish £20 notes were being put into circulation by organised crime gangs.
“Advice was given as to how to identify them – but with a warning not to accept if in doubt.
“This warning, coupled with an increase in the receipt of fake notes by pubs, led to a decision in late November last year not to accept Scottish £20 notes. This does not apply in Scotland and certain towns and cities with close links to Scotland.
“Scottish £50 notes are not accepted for the same reason. We will continue to keep the decision under review.”
