Theresa May U-turns on plans to consider scrapping 1p and 2p coins after huge public backlash
Chancellor was branded a ‘penny pincher’ yesterday after hinting the ‘obsolete’ copper change could be taken out of circulation – but PM’s spokesman confirmed they are safe
AFTER huge public outcry Theresa May has U-turned on plans to consider scrapping 1p and 2p coins.
The Chancellor was branded a “penny pincher” yesterday after hinting that the “obsolete” copper change could be taken out of circulation.
But today the Prime Minister’s spokesman confirmed they are safe, in an embarrassing moment for Philip Hammond.
Yesterday he used his Spring Statement to resurrect proposals first floated by his predecessor George Osborne to ditch pennies.
The plans in 2015 were blocked by the then-PM David Cameron, after Downing Street feared the “symbolism” of the Tories doing away with coins would be a vote loser, after warnings from charities their donations would suffer.
But yesterday the idea was brought back as part of a series of “listening exercises” announced by Mr Hammond.
The Treasury plans also questioned the future of the £50 note amid claims it was used almost exclusively by criminals.
However the Labour MP Wes Streeting blasted Mr Hammond, saying: “After eight years of the Tories, working people have fewer pounds in their pocket.
“That’s not enough for this penny pincher Chancellor — he wants to take away people’s one and two pennies too.”
He went on: “He should leave well alone and focus on getting the economy back on track.”
And 24 hours later the Government has signalled they will not be pursuing the policy, with a spokesman for Mrs May telling reporter: "There are no proposals to scrap one or two pence coins in the consultation that HMT issued yesterday.
"The call for evidence is simply intended to enable the Government to better understand the role of cash and digital payments in the new economy.
"One thing HMT were seeking views on was whether the current denominational mix of coins meets the public's needs, and from the early reaction it looks as if it does."
John White, head of BACTA, the trade association for UK amusement arcades, said it was a "victory for common sense".
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He told The Sun: "Coastal arcades across the country will now breathe a collective sigh of relief.
“Aside from the impact on inflation, the removal of our smallest denominations would have a huge impact on British heritage and the seaside arcades that stimulate local economies and tourism. “
And Lib Dem leader Vince Cable said: “The penny dropped fairly quickly after the instant criticism.
“This is good news for hard up families and pensioners who have to watch the pennies, as well as seaside penny arcades and charities.”
