To ask Mr Chancellor of the Exchequer, what estimate he has made of the cost to business of amending coin collections systems as a result of the new pound coin entering circulation in March 2017.
During the Treasury’s consultation with industry in 2014 we received a wide range of cost estimates for the transition to the new £1 coin varying by individual business need, mostly attributed to the need to upgrade coin handling equipment. It is therefore not possible to provide an accurate estimate of the total cost to industry.
We have, however, taken a number of steps to help manage these costs. For instance, the early announcement of the new coin has provided businesses with a long lead time allowing for effective and extensive planning ahead of the changeover. Individual businesses and the wider economy will also benefit from the reduced costs associated with a fall in the counterfeit rate, as well as from a currency in which there is widespread confidence.