The Lewes Pound, Britain’s final surviving local currency, has officially ceased circulation after 17 groundbreaking years, marking the end of an innovative economic experiment that captured national attention and inspired communities worldwide.
The Rise of the Lewes Pound
Launched in 2008 during the global financial crisis, the Lewes Pound emerged as a powerful symbol of community resilience. This local currency specifically aimed to support small businesses and keep money circulating within the East Sussex town. Organizers initially hoped for 100 buyers and 25 participating businesses, but the project immediately exceeded expectations. Surprisingly, 400 people purchased the first run of 10,000 notes, while 75 shops signed up enthusiastically.
Unique Features of Lewes Pound
The currency featured distinctive elements that set it apart from conventional money:
- Unusual denominations including a £21 note
- Local historical figures like radical philosopher Thomas Paine
- Community-backed value with full sterling backing
- Local business focus promoting independent retailers
Challenges Facing Lewes Pound
Despite its initial success, the Lewes Pound faced significant operational challenges. Retailers found the scheme somewhat cumbersome, requiring dedicated till space and separate accounting. Additionally, residents living outside Lewes encountered difficulties spending the currency. As cash usage dramatically declined across the UK—dropping from half of all transactions in 2009 to just a quarter by 2019—enthusiasm gradually waned.
Social Impact of Local Currency
The Lewes Pound generated remarkable social benefits that extended beyond mere economic transactions. A innovative donate-a-drink initiative at Lewes Depot cinema redirected funds to local food banks, enabling families to purchase from community shops. Former mayor Susan Murray recalled touching stories, including a grandmother who used the currency to buy Christmas books for her grandchildren for the very first time.
Digital Payments and Decline
The steady rise of card and digital payments ultimately sealed the fate of the Lewes Pound. Rob Hopkins, co-founder of the Transition Towns movement that inspired the currency, acknowledged that “the rise of plastic” contributed significantly to its decline. However, he emphasized that the principles behind local currencies remain vitally important today. Hopkins notably stated, “The thing about local currencies was they stayed in that place. Jeff Bezos couldn’t hoard Lewes Pounds.”
Legacy and Future Distribution
Approximately £10,000 of remaining backing funds will now be donated to local organizations including the Friday Food Market and Lewes Climate Hub. Miles Jenner of Harvey’s Brewery, one of the earliest adopters, reflected that while the currency might not have changed the world, it represented something everyone could support—community pride and distinctive local identity.
Frequently Asked Questions
What was the main purpose of the Lewes Pound?
The Lewes Pound aimed to support local businesses, keep money circulating within the community, and promote economic resilience during the financial crisis.
How many businesses participated initially?
Seventy-five shops signed up during the launch, far exceeding the initial target of 25 participating businesses.
Why did the Lewes Pound ultimately fail?
The currency declined primarily due to decreasing cash usage and the rising dominance of digital payments, making physical local currencies less practical.
What will happen to remaining funds?
Approximately £10,000 in backing funds will be donated to local organizations including the Friday Food Market and Lewes Climate Hub.
Did other UK towns have similar currencies?
Yes, the movement included Totnes, Brixton, and Bristol Pounds, all inspired by the Transition Towns movement and earlier North American schemes.
What was the most unusual denomination?
The currency featured a £21 note, among other unique denominations that celebrated local history and culture.
