dec 4, 2020 - UK 'missing' £50bn of cash

Description:

The Bank of England should be trying to track down £50bn of "missing" UK currency, a committee of MPs has said.

The figure amounts to about three-quarters of all UK banknotes in existence.

The cash is not used in transactions or held as savings, but may be overseas, tucked away in homes unreported or being used in the "shadow economy".

The issue was first identified by the National Audit Office (NAO), which highlighted it in September.

Now the Public Accounts Committee has said the Bank should "get a better handle" on the currency.

The committee said there were "implications for public policy and the public purse" if a material proportion of that large volume of banknotes was being used for illegal purposes.

However, the UK is not the only country to face this problem - and other major global currencies could well be more seriously affected.

A Bank of England spokesperson said: "It is the responsibility of the Bank of England to meet public demand for banknotes. The Bank has always met that demand and will continue to do so.

"Members of the public do not have to explain to the Bank why they wish to hold banknotes. This means that banknotes are not missing."

However, the figure of £50bn is not disputed, even if the terminology is.

The money "is stashed somewhere, but the Bank of England doesn't know where, who by or what for - and doesn't seem very curious", said Meg Hillier, who chairs the committee. (BBC News)

Added to timeline:

Date: