The decline of copper coins would “devastate” the local economies of seaside towns, arcade owners have warned.
Business owners have said the demise of 1 and 2ps would reduce consumers’ willingness to play on penny pusher machines, which need a steady supply of new coins to work.
The remarks came after the Treasury ordered no new 1ps or 2ps be minted this year, saying that there were already enough of the coins in circulation. The Royal Mint is responsible for creating new coins, which HM Treasury then orders based on demand.
It has fueled fears of the beginning of the end for coppers – a suggestion the Treasury has rejected. President of the British Amusement Catering Trade Association John Bollom said that any changes could have a “devastating effect” on seaside economies, in particular amusement arcades.
“Penny falls machines in particular need a steady supply of 2p coins to allow them to operate. The Mint’s decision will inevitably reduce the amount in circulation.
“The copper coins are part of the seaside experience with generations enjoying the penny arcades. Our fear is that this move could eventually result in their withdrawal from circulation which would be catastrophic. We urge the Mint to reconsider.”
Wage levels in seaside resorts are already among the lowest in the country, with local economies dominated by seasonal hospitality and care. The decline in the use of cash, which now makes up just 12pc of payments, has made maintaining the number of coins in circulation more expensive.
Nearly 40pc of UK adults lead largely cashless lives, figures from trade body UK Finance revealed.