Bank of England Shrinks Cash Footprint

The success of the new polymer series and falling transactional demand are behind the Bank of England’s proposal to close its regional cash distribution centre in the northern city of Leeds, in February 2023.

The Bank has maintained an operation in Leeds since the establishment of a branch there in 1827. Since 1997, this has focused on cash distribution.

Following the successful transition of English banknotes to polymer, the Bank says it expects demand for distribution of new banknotes to fall in light of their greater durability, together with the continuing trend towards lower transactional usage of cash (Recent research by the financial consultancy firm Enryo suggested that cash transactions fell from 7.2 billion in 2019 to 3.4 billion in 2020, a 53% drop).

‘After careful analysis, the Bank has concluded that future distribution needs can be met from its Debden cash centre and existing storage facilities, without replacing the Leeds cash centre when the lease on the current property expires’, the Bank said in a statement.

All services currently provided through the Leeds cash centre will continue at the Debden cash centre just outside London, which is where the printworks run by De La Rue is located. This includes the service to assess and redeem mutilated notes which is currently performed in Leeds.

The Bank says it remains committed to meeting the demand for banknotes in all parts of the UK.

It also remains committed to ensuring that it is represented across the whole of the UK, and its network of 12 agencies ensures that it remains alert to local economic conditions. Building on this, it has announced a new northern hub in Leeds.