Our esteemed Treasury Spokesperson Daisy Cooper recently announced plans to replace the Treasury with a Department of Growth tasked with promoting economic growth and ending the cost-of-living crisis and a Department of Expenditure. The very first event of Spring 2026 Conference in York is the Consultative Session for the Thriving Economy Policy Working Group, doubtless where many members plan to contribute other inspired and radical proposals to boost our economy.
I write to make one such proposal: the establishment of a Bank of the United Kingdom with a complete monopoly on banknote issuance, principally by rescinding the issuing power of the six authorised banks.
Some of you, dear readers, may question the point of this proposal in light of digital payments. With 61% of Britons making cash payments at least once a week, there is still a place for physical payments in our society, especially for use by vulnerable people and in the eventuality of digital system failures.
How banknotes are issued in the UK makes little to no sense. Bank of England notes are not accepted in Scotland or Northern Ireland, and Scottish and Northern Irish notes are generally not accepted in England or Wales by virtue of being promissory notes. Bank of England notes are the only ones that may be traded internationally, included via bureaux de change. This system of barriers helps contribute to the weighting of our economy towards London.
In response to the Great Recession, the 2009 Banking Act required the authorised banks to hold in reserve the same value of Bank of England notes or gold as banknotes they have in circulation, amounting to over a billion. In effect, while a Bank of England £5 note cannot be used in Scotland or Northern Ireland, an authorised bank would need to possess one to ensure the value of every one of its own £5 notes. This leads us to the oddities of £1,000,000 (‘Giant’) and £100,000,000 (‘Titan’) notes which cannot be spent as even readers of Mark Twain may attest.







