Record demand for cash on Britain's high streets has been driven by heatwaves and sports events, according to Post Office data. Business cash deposits hit their highest level at the start of the summer, with nearly £69 million more deposited compared to the same quarter last year – a 2% increase.
Cash use linked to warmer weather and social calendars
The Post Office said the surge in cash use could reflect everyday, lower-value spending associated with warmer weather and busier social calendars, such as drinks and snacks while watching sport, pub trips, local shopping, family days out and travel. It also suggested that households might be using cash to keep a closer eye on spending as costs rise.
Between May and June this year, business cash deposit volumes rose 6% to more than 1.3 million transactions, and the value of business cash deposits increased 3%. Personal cash withdrawal volumes increased 4% between April and June, reaching nearly seven million transactions each month. The value of personal cash withdrawals over the quarter rose by almost 5% compared with the same period last year.
Local businesses see high demand for cash services
The Post Office noted that local branches experienced higher demand for cash services, with cafes, pubs and bars in particular needing to manage takings and day-to-day cashflow against a backdrop of a summer of sport and record-breaking heatwaves.
Sarah Ellis, branch manager at Copperhouse Post Office in Hayle, Cornwall, said: “We’ve seen a big increase in business cash deposits over the summer, and customers are withdrawing more cash for everyday spending.
“There are still lots of cash-only businesses in Cornwall, and many people feel cash helps them budget better.
“Many local small businesses, especially pubs and cafes, use the Post Office to deposit their takings, and we see business owners coming from further afield too for cash services.
“While there are still some banks in the area, during the busy tourist season business owners don’t want the hassle of travelling in to town to bank their cash.”
Post Office official and business owner comment
Ben Hunter Woollard, head of banking at Post Office, said: “These record business cash deposits show that cash continues to play a vital role for businesses across the UK, particularly during busy trading periods.
“While people increasingly choose different ways to pay, cash remains essential for many retailers, hospitality venues and service businesses managing money day to day.”
Toby Hume-Rothery, owner of Gilbert’s Beach Bar and Kitchen and Salt Kitchen Bar, both in Hayle, Cornwall, said: “We see a big increase in cash use across both our businesses during the summer months.
“People like to have a bit of cash in their pockets when they’re out and about, making smaller purchases like ice creams for the kids or snacks in a cafe rather than larger purchases, and cash is often their preferred way to pay.”
