Bank of England will change to polymer banknotes

Not really a surprise but the Bank of England (BoE) has decided that the new £5 and £10 will be printed on polymer. About three months ago, the BoE has taken sample £5 and £10 notes to shopping centres, showing the public that they are secure, cheaper and greener than paper-based money. And the public loved the new notes: 87% favoured the new notes over the old material.

The Bank said it expected to commission polymer producer Innovia to produce the sheets of plastic. This will be quite a blow to De La Rue, the supplier of banknotes to the BoE for a decade. De La Rue is likely to retain the contract to design and print the notes at the BoE-owned plant it operates in Debden.

The new notes will be smaller (by around 15%). The first polymer note to be printed and issued will be the £5 note with the image of Sir Winston Churchill. This note will enter circulation in 2016, shortly followed by the £10 note with the image of Jane Austen. The BoE has indicated that a decision would be made "in due course" on whether to make the most common note, the £20, also from polymer. But I would be surprised if it would be anything else than polymer.