Thirtieth Report - The production and distribution of cash
Select Committee
Public Accounts Committee
HC 654
4 December 2020
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirtieth report from Session 2019-21 · published 25 Mar 2021
Recommendations & Conclusions
5 results
6
Recommendation
Not Addressed
The continued reduction of coin use, possibly accelerated by Covid, is likely to put further...
Recommendation
The continued reduction of coin use, possibly accelerated by Covid, is likely to put further pressure on the Royal Mint’s ability to deliver a profit on its UK coin manufacturing operations. Coin use has declined over recent years, and the …
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Government Response Summary
The government's response is a boilerplate text about the Bounce Back Loan Scheme and does not address the recommendation for HM Treasury and the Royal Mint to outline plans for sustainable and cost-effective coin manufacturing.
HM Treasury
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1
Conclusion
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Treasury, the Bank of England, the Financial Conduct Authority, the Payment Systems Regulator and the Royal Mint, about the production and distribution of …
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Government Response Summary
The government's response does not address the Committee's introductory statement about taking evidence, instead focusing on different policy matters like cash access legislation and cashback.
HM Treasury
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14
Conclusion
Coins are produced for the whole of the UK by The Royal Mint (the Mint)...
Conclusion
Coins are produced for the whole of the UK by The Royal Mint (the Mint) under a contract with the Treasury, which also acts as the Mint’s sole shareholder. The Bank of England (the Bank) is responsible for producing notes …
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HM Treasury
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18
Conclusion
Not Addressed
Once printed, the Bank holds contingency stocks of all notes at its premises to avoid...
Conclusion
Once printed, the Bank holds contingency stocks of all notes at its premises to avoid shortages. The Bank sets its minimum contingency stock level by considering potential supply and demand shocks, and benchmarks itself against the practice of other major …
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Government Response Summary
The Bank of England's response does not directly address this conclusion, which details the Bank's high contingency stock levels and associated costs. Instead, it commits to reviewing documentation around stock decisions and ensuring factors are clearly recorded, which relates to a different recommendation.
HM Treasury
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19
Conclusion
Not Addressed
According to the Bank, it is not unusual for it to maintain high stocks.
Conclusion
According to the Bank, it is not unusual for it to maintain high stocks. It told us that it is more efficient to have long print runs of each note denomination—often lasting up to a year—as short print runs require …
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Government Response Summary
The Bank of England's response, despite stating agreement, does not directly address the content of this conclusion which explains the Bank's current practice and rationale for maintaining high stocks. Instead, it commits to reviewing documentation around stock decisions, which relates to a different recommendation.
HM Treasury
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