It is known worldwide as a security motto. But the Bank of England is clearly unclear where the Â£ 50bn of banknotes have gone, and it does not evidently even appear to be overly concerned about it, a powerful party of MPs has said.
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government’s banker, and still one of the bankers for the Government of the United Kingdom, it is the world’s eighth-oldest bank.
With stern reprimands on Threadneedle Street, the Commonwealth Public Accounts Committee said the money – equivalent to a staggering Â£ 5 notes over 800 miles high – was lost âbecause the Bank did not keep enough tabs in today’s Britain’s spending or usage of cash.
Despite having an 8ft-sized wall and a good reputation for guarding billions of pounds of gold in its safety lockers and vaults, the PAC said the Bank had shown âlax attitude to whereabouts of bulk of sterling cash supply”.
However, the banknotes with its structure are not traceable, making it difficult for the Bank to track money and know exactly where its notes end up.
National Audit Office’s Report
According to a report from the National Audit Office, there is about Â£ 50bn of paper money that can be spent overseas or in the UK, a small fraction of the billions of pounds circulating in the UK economy through physical notes and digital transfers.
The PAC speculated that the money could be squandered under mattresses as unaccounted for household savings could be taken abroad, or used in the shadow economy. “The Bank of England does not know,” he said.
The number of bills circulated has increased this year, which the Bank said was probably due to more people starting to collect money during the Covid-19 epidemic if they needed it.
Expenditure has declined over the years, with the production of new pens and kilograms by Royal Mint falling by almost 65% over the past decade, a trend that could not be accelerated by the epidemic as more people move to use bank card payments.
Meg Hillier, chairman of the PAC, said: âThe Â£ 50bn sterling notes – or about three-quarters of this precious and diminished gift – have disappeared somewhere but the Bank of England does not know where, by whom, or why, and does not seem to be curious. .
Spokesperson Of Bank Of England
“The Bank of England must be very concerned about where the Â£ 50bn is lost. Depending on where it is and how it is used, that amount of money could have a significant impact on public policy and public funds. The Bank must better manage the currency of the country it controls. â
A spokesman for the Bank said: âIt is the responsibility of the Bank of England to meet the needs of the public. The bank will always meet this requirement and will continue to do so. Members of the public do not have to explain to the Bank why they wish to be in ownership of the banknotes. This means that the banknotes is not lost. â