Independent retailers must be considered in any future decisions on mandating cash payments, stated a leading body , after reports that the the Government may consider to make cash acceptance mandatory in the future.
A new report from the Treasury Committee has warned that declining cash acceptance could lead to a "two-tier society" and a lack of Government action on cash acceptance could particularly affect vulnerable groups such as people with learning disabilities, domestic abuse survivors, and the elderly.
Commenting on the report, British Independent Retailers Association (BIRA) today (May 27) has stressed that independent retailers must be considered in any future decisions on mandating cash payments.
Bira survey research from 2023 indicated that 98 per cent of independent retailers accepted cash, slightly higher than the 97 per cent who accept credit/debit card, while 89 per cent of respondents stated that they do not see themselves ceasing acceptance of cash in the foreseeable future.
Andrew Goodacre, CEO of Bira, said, “Cash is important to make sure retail is accessible to as many people as it can be. Equally important is that independent retailers must be considered in any action taken regarding cash acceptance, and the costs to high street shops must be factored in.
“Retailers should retain the choice to accept whatever forms of payment they choose in their own store policies.”
Goodacre added, “There must be plans to maintain bank presence on the high street. Initiatives like Cash Access UK are aiming to ensure bank presence in some form, but there must be readily available ways for retailers to deal with cash.”
There is currently no legislation requiring businesses in the UK to accept cash and the Treasury Committee has also highlighted the lack of reliable data on cash acceptance, with inconsistent findings between consumer and business surveys.
Releasing the report, Chair of the Treasury Committee, Dame Meg Hillier MP, said, “The Government is in the dark on how widely cash is being accepted and that is completely unsustainable. We are at risk of a two-tier society where the most vulnerable bear the brunt and this needs to be a wakeup call.
“Our Committee has sought to give a voice to those groups which are at severe risk of not being heard by Government policymakers. A sizeable minority depend on being able to use cash and they must not be forgotten by Whitehall.
"As a society, we must avoid sleepwalking into a situation where cash is no longer widely accepted. This is the beginning, not the end, of our scrutiny of this issue. The Government needs to take this seriously.”
The increased number of closures of physical high street banks remains an issue for independent retailers accepting cash, with initiatives such as Cash Access UK, which is working to introduce banking hubs on high streets, becoming increasingly vital to help businesses with cash deposits and withdrawals.
