REPRIEVE FOR BRITAIN'S 1P AND 2P COINS

The chancellor is pledging to keep 1p and 2p coins in circulation, a year after calling them "obsolete" and suggesting that they should be scrapped.

Philip Hammond will say in a speech today that there are "no plans to alter the make-up of coins or notes" and that cash denominations will continue in their present form when he announces the launch of a task force "to safeguard the future of cash and ensure its availability for years to come".

While acknowledging that technology has "transformed banking for millions of people", Mr Hammond will emphasise that it is "also clear that many people still rely on cash". He wants the "public to have choice over how they spend their money".

Economists at the Bank of England weighed in, arguing that removing coppers from circulation would not cause inflation, as is often claimed. Scrapping the two smallest denominations would lead to retailers rounding up prices, they admitted, but there would be no serious impact on cost.

To read the complete article (subscription required), see:
Coin flip: Hammond changes his mind on scrapping the penny (https://www.thetimes.co.uk/article/coin-flip-hammond-changes-his-mind-on-scrapping-the-penny-q5mzhc7fl)

Plans to ensure that Britons will be able to carry on ‘spending a penny’ will be unveiled this week.

Chancellor Philip Hammond is set to confirm that a controversial proposal to abolish 1p and 2p coins has now been ditched.

The about-turn comes more than a year after Mr Hammond described the coins as ‘obsolete’.

The plan sparked protests, with the Chancellor labelled a ‘penny-pincher’ and Downing Street distanced itself from the idea.

David adds:

To read the complete article, see:
https://www.dailymail.co.uk/news/article-6967307/Chancellor-Philip-Hammond-decides-save-1p-2p-coins-U-turn.html (https://www.dailymail.co.uk/news/article-6967307/Chancellor-Philip-Hammond-decides-save-1p-2p-coins-U-turn.html)

To read the earlier E-Sylum article, see:
FATE OF BRITAIN'S 1P AND 2P COINS UNCLEAR (https://www.coinbooks.org/v22/esylum_v22n17a24.html)

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