The Bank of England needs to investigate where around £50 billion of “missing” banknotes are “stashed”, an influential committee analysing public spending has said.
 
The Public Accounts Committee affirmed the Bank needs to “get a better handle on the national currency it controls.”
 
It said authorities have been lax in ensuring access to cash for consumers and businesses, and are failing to understand or act on the dangers of hardship if the UK continues moving towards a cashless society.
 
Meg Hillier, the chair of the PAC, observed: “£50bn of sterling notes – or about three-quarters of this precious and dwindling supply – is stashed somewhere but the Bank of England doesn’t know where, who by, or what for, and doesn’t seem very curious.
 
“It needs to be more concerned about where the missing £50bn is. Depending where it is and what it’s being used for, that amount of money could have material implications for public policy and the public purse. The Bank needs to get a better handle on the national currency it controls.”
 
A spokesman for the Bank of England said: “It is the responsibility of the Bank of England to meet public demand for banknotes. The Bank has always met that demand and will continue to do so. Members of the public do not have to explain to the Bank why they wish to hold banknotes. This means that banknotes are not missing.”
 
At the end of July, the Bank held contingency stocks with a value of £30.4 billion, over and above the minimum guidance levels of £15.6 billion.