JD Wetherspoon said it had made the change to its policy due to concerns over counterfeit currency
The Government has responded to Wetherspoon’s decision to alter its cash payment policies. In November 2024, the pub chain decided to stop accepting Scottish £20 and £50 notes due to fears over “criminal gangs” distributing counterfeit currency.
Liberal Democrat MP Angus MacDonald queried the Government about any discussions it had with Wetherspoon regarding “their policy on accepting Scottish banknotes in their premises in England”. Treasury minister Lucy Rigby provided the Government’s response.
She said: “There is no legal requirement for businesses to accept specific forms of payment. Each business decides which payment methods to accept based on factors including cost and customer needs and preferences.”
She further clarified that the Government has “no plans” to amend the legislation on this matter. However, she did highlight some recent changes in the law related to cash availability.
Ms Rigby explained: “In recognition that millions of people continue to use cash, the Financial Services and Markets Act 2023 introduced safeguards to protect the public’s access to cash.”
This legislation gives new powers to the Bank of England to promote wholesale cash distribution. The minister continued to explain how the cash system works.
She said: “The UK is unusual in allowing several commercial banks to issue their own banknotes. As well as Bank of England issued notes, authorised banks in Scotland and Northern Ireland issue banknotes in those jurisdictions.
“However, it remains the individual retailer’s choice whether to accept or decline any form of payment, including cash or card, based on their consideration of factors such as customer preference and cost.”
Why did Wetherspoon change its cash payment rules?
In explaining the decision to stop accepting Scottish banknotes, Wetherspoons spokesman Eddie Gershon said: “We were notified by the Bank of England last October that a large number of fake Scottish £20 notes were being put into circulation by organised crime gangs. Advice was given as to how to identify them – but with a warning not to accept if in doubt.
“This warning, coupled with an increase in the receipt of fake notes by pubs, led to a decision in late November last year not to accept Scottish £20 notes. This does not apply in Scotland and certain towns and cities with close links to Scotland.
“Scottish £50 notes are not accepted for the same reason.We will continue to keep the decision under review.”