Treasury MPs meet market traders amid cash plan

The government is considering whether to make it compulsory for businesses to accept cash

Market traders received a visit from a government group considering plans to make it mandatory for businesses to accept cash payments.

MPs from the Treasury Select Committee went to Darlington's Victorian Covered Market to speak to traders about the potential pitfalls and benefits of the move.

Cash accounted for just 12% of transactions in 2023, but more than three million people in the UK are believed to still prefer this method of payment.

Labour's Dame Meg Hillier MP, who chairs the committee, said: "We know for a lot of people cash is a really important budgeting tool, you go out with your £10 or £20, that's what you have to spend and that's it."

She also said that many people did not have smartphones or bank cards and it was important the committee took this into consideration.

Businesses accepting cash keep all of the money as they do not have to pay processing fees.

However, many people prefer contactless payments which are considered secure and easier.

Florist Vicky Hudspith-Bailey said only a third of her customers paid cash

Many of the traditional stalls at the market still rely on cash, Hillier heard during her visit.

Greengrocer Robin Blair said older customers were especially keen to keep using notes and coins and 90% paid in cash.

"You can always have a good haggle and you can do a deal," he said.

"People say 'I've got £10 what can you do for me?'".

But florist Vicky Hudspith-Bailey said contactless payments had overtaken cash.

"We are about 70% contactless and 30% cash, for us it's just about flexibility, offering the customer a choice."

The Treasury Committee is due to make its recommendations on cash payments in the coming months.