Heatwaves and sports events drive record demand for cash on high streets

Heatwaves and sports events have driven a record demand from consumers for cash to spend on Britain’s high streets, latest figures show.Business cash deposits reached their highest level at the start of the summer, according to Post Office Cash Tracker data.The Post Office said the surge in the use of cash could reflect the everyday, lower-value spending that came with warmer weather and busier social calendars, from drinks and snacks while watching sport to pub trips, local shopping, family days out and travel.It also speculated that households could be using cash to keep a closer eye on spending as costs added up.Businesses deposited nearly £69 million more, a 2% increase, compared to the same quarter last year – more than any previous year.The Post Office said its local branches saw higher demand for cash services, with cafes, pubs and bars in particular needing to manage takings and day-to-day cashflow against the backdrop of a summer of sport and record-breaking heatwaves.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%.Consumers also continued to turn to cash, with personal cash withdrawal volumes increasing 4% between April and June, reaching nearly seven million transactions each month.The value of personal cash withdrawals over the quarter rose by almost by 5% compared with the same period last year.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.”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.Read More“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.”