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Discount For Cash? Not for much Longer!

The barmaid passed the pint of Forward Pass[1] over the bar to me, smiling.

Locally made, and perfect for glugging during the Six Nations!

“Thanks” I grinned, holding my smartphone out.

Grabbing the electronic card reader, she held it to my phone, which dutifully chirped, signifying that the £3.60 had been transferred from my current account into the club’s coffers.

Sooo easy to spend your money like this!

Taking my pint to a quiet table, I sat down, musing about the transaction.

Only two years ago, my club would only accept a card payment if the transaction value was over ten pounds. This was to cover the 2.0% transaction fee levied by the card processing company.

Not being a heavy drinker, I rarely spent over ten pounds during a post-work visit to the club, except on Friday nights, when I would meet with the “Last of the Summer Wine” crew and I would stand my round.

So, on Fridays, I would always hit the ATM at the Co-Op on the way home and withdraw enough cash to cover me for the weekend, and for coffees and snacks at work for the following week.

Two things have caused a seismic shift in how we pay for things.

In 2014 Apple introduced Apple Pay, enabling contactless payment transactions to be made using Apple smartphones. Initially, like a lot of people, I was suspicious of this as a means of payment.

Quick and Easy – Apple Pay from my Smartphone…

However, six years of advances in security including the use of thumbprints and facial recognition technology has meant that I now feel much more comfortable with using my phone to pay for items.

Some retail outlets such as Tesco’s limit the maximum contactless transaction value to £30.00, but in many places, including department stores and garages it is still possible to pay using a smartphone or a debit card.

The other thing that initiated a quantum shift in payment methods is that the UKGovernment banned debit and credit card surcharges on January 13th 2018.

All of a sudden, retailers were no longer able to charge for the use of a debit card or credit card payment, so almost overnight the need to carry cash became far less urgent.

So, is cash being phased out as a means for paying for goods and services?

Cash has been with us for over 30,000 years, before written history – and evidence of accounting using tally sticks goes back to the later stages of the stone age.

The Ancient Roman author and scholar Pliny the Elder (AD23- AD79) writes of the best woods to use for tally sticks.

Cash is a meaningful and tangible token of worth, and is universally accepted within a society as having a standard value – as opposed to barter, where individuals trade specialist skills in exchange for goods and services.

Because of the universal acceptance of cash, both coins and notes, it is used as an instant way of paying for goods and services. It is also largely untraceable, so whilst two individuals may conclude a transaction there is no record of payment being made or received.

One of the advantages of anonymising transactions, is that it makes the use of cash attractive for the conduct of criminal activities, and in the past ransoms have been demanded to be settled in unmarked used bank notes.

Even otherwise honest members of society may unwittingly commit crimes by defrauding the government of income tax.

Tradesmen who would never steal from, or swindle their customers may routinely offer a discount for cash – meaning that such transactions never go through their books, and are therefore free of income tax or VAT.

This benefits the tradesman, as the cash received may be used for personal spending, and the buyer saves overall on the cost of the item or work.

There is, however, an indirect advantage to this, which is that the cash earned is frequently injected into the local community, either in the local shops, or pubs and clubs.

Call me a cynic, but the rapid introduction of digital banking is positively welcomed by governments globally. as all transactions will be traceable and identifiable.

Only a year ago, the BBC reported that the use of cash is in decline, and will only account for 10% – 15% of all transactions by 2026.

Obviously, there are also advantages to a business becoming cashless. Retail premises such as pubs, clubs and restaurants may save money from not having to buy expensive sales terminals and then enjoying lower insurance premiums as a result of having no cash on the premises.

Intangible expenses such as employee time wasted in cashing up, and paying in money at the bank’s premises are immediately removed. The inadvertent acceptance of counterfeit money is also eradicated.

Cashing up at the end of a shift – a thing of the past?

Losing cash forever, would, in my ‘umble opinion, be a bad thing, as the elderly, the poor and the disadvantaged would be unfairly penalised if their way of paying their way were denied to them.

The merciless march of automation and the ruthlessness of the digital economy may well change our society for ever.

Brave New World?

You decide.

Go Well…


[1] Triple F Brewery, Alton, Hampshire, UK

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Councils Crime English Culture Environment Local Authorities Motoring Society Transport Uncategorized Vehicles

Abandoned – and on the Verge of Falling Apart…

On December the second last year, I left home to endure my pre dawn commute. Driving down the lane, I noticed a black Mini car parked on the grass verge outside my neighbours’ house. As I passed it, I could see that it wasn’t in bad condition, and assumed that it belonged to a visitor.

Thinking about this later, I realised that if it were one of Jim’s visitors, then they would have parked in his large forecourt, off the road, rather than untidily parked on the grass.

I continued to wonder what the true situation was, and made a mental note to chat with Jim at the weekend.

Happily, and by coincidence, my Brother and Sister in law (of Tread the Globe fame) visited during the week, and Chris wanted to test fly his new drone, in preparation of it being used on their epic Round the World journey. During his test flights, he captured a nice image of the car parked in the lane, and that photo, shown below, was dated 5th December 2019.

The Mini Car parked on the grass – Drone photo courtesy of Chris Fisher of Tread the Globe

On Saturday morning, I spotted Jim, my neighbour, so wandered down to have a chat to him.

I asked him about the Mini car, and he told me that it was abandoned, and that he had checked with DVLA and the vehicle was untaxed, and he therefore assumed that it had been either abandoned or stolen. He had called the local council, and had reported this so that they could organise for it to be collected and disposed of.

To date the vehicle is still sitting there on the grass, and as each week passes it is subjected to further vandalism and damage; both door mirrors smashed off, and the rear wiper ripped away. It now looks very sad, and is slowly decomposing in the wind and rain.

Abandoned and un-loved. Wing Mirrors smashed, and under threat of further vandalism

Abandoned vehicles are a much bigger problem than I had imagined.

It appears that UK Councils spent almost a million pounds to remove the 32,000 abandoned vehicles from Britain’s highways and byways in the 2016/2017 fiscal year.

It’s alarming to find that there has been a 577% increase in the dumping of cars and vans in a four year period (2012-201).

A Freedom of Information request lodged with Britain’s 436 local authorities revealed that across the nation, 31,812 vehicles were removed and disposed of.

It is a criminal offence under Section 2 of the Refuse Disposal (Amenities) Act of 1978 to abandon a vehicle, and carries a maximum penalty of £2,500 and/or three months imprisonment.

This doesn’t seem to deter people from dumping, and the revenues raised from fines levied (when the owners may be traced) amount to £115,610 – which comes nowhere near the costs.

The authorities costs may be even higher if the abandoned car needs to be scrapped, and the shortfall in funds have to be recovered from local residents from taxation.

It seems that the highest number of reported and removed vehicles are in the South East, probably because this region is densely populated with both people and cars.

Motor insurance comparison website, Confused.com conducted some research, and this seems to suggest that the high costs associated with recovering and repairing a car have become unaffordable for some, with 23% of respondents claiming that this is the reason for dumping a vehicle. 30% of respondents dumped their car because it had broken down, and they could not afford to have it towed to a garage for repair.

7% said that they could no longer afford to run a vehicle at all.

The statistics also seem to suggest that 16% of drives who abandoned their cars did so for an average of three weeks, which suggests that these drivers are basically honest, and returned to recover the car when they could afford to do so.

Naturally there are a percentage of drivers who dump their cars because they can’t afford to pay the VED, or the insurance, and a small percentage who have stolen a car to get somewhere, and dump it when they have finished using it.

Some abandoned cars may have been used to commit crimes, and these too will be dumped at tax payers expense.

But back to my situation

It is now 28th February. 88 days since Jim reported the Mini outside his house.

I wonder how long it will take the local authority come out and move it?

Answers on a postcard…

UPDATED 02 MARCH 2020

I spotted this sign during a trip to some of the local shops…

I dont know whether to laugh or cry… Or maybe cry with laughter!

A bit of an empty threat really. They havent been able to remove an untaxed, probably uninsured vandalised vehicle from the lane in which I live after more than ninety days, so signs threatening removal after 48 hours seem somewhat ambitious.

Go Well…