Anybody who has spent any time in Bristol at all, knows what lively local high streets the city has which is something that is widely cherished. The city is fiercely resisting the onslaught of “clone town Britain” whereby all High Streets look and feel the same. Boring for sure.  So in a bid to keep the Bristol High Streets lively and unique, and to prevent the closing down of local independent High Street shops in favour of huge out of town national hypermarkets, the city of Bristol is launching its own currency. The aim is to keep the money circulating locally.

The annual Bristol balloon festival is one of Bristol's notable features Photo: Mike Peel

Of course, this is not the first time this has happened in the UK. Totnes, arguably the capital of New Age Britain, launched its own Totnes Pound in 2006 and has had some success – but only some 70 retailers and traders who use it, and however  alternative Totnes is, it is only a small town with a tiny economy.

Nearby Stroud, in Gloucestershire, another alternative centre, starting printing its own currency about 18 months ago, but so far only about 30 firms are taking the money.

Bristol’s unique character

But Bristol is a different scale altogether. It is a large city with a proud heritage. So the attempt by such a city to break out of the mould is to be noticed. It is also quite a centre for alternative thinking – perhaps one of the most progressive of banks, Triodos an expert in sustainable banking, is based in Bristol.

So with the Euro (the macro) in serious trouble and the world’s financial system clearly in turmoil, why not break out of the mould and have a serious look at the micro. Why not let a city go it alone and print its own money?

Of course the scheme will not in and of itself help Britain’s economic recovery. It will simply move money from one sector (the national) to another (the local). But Tesco’s loss will the local baker and local delicatessen and local grocer’s gain. For those who like to support local businesses, this is a simple and easy way to do it. Local independents are of course, struggling to compete with the national chains.

So if you live in Bristol and you don’t like the idea of local shops being replaced with national chain supermarkets, then open an account and start using Bristol Pounds. For Bristol Pounds must by definition stay within the city. If you spend five Bristol pounds at a Bristol store, it must use the money to pay local suppliers or staff, who in turn must also use that very same money within the local economy.

If Bristol can stay vibrant, interesting and above all interesting, then the local currency model could be picked up elsewhere. Rumours are that Edinburgh, Manchester and Glasgow are taking a close interest.

Over one hundred business have already agreed to accept the new currency which is due to go into circulation in May. There will be notes printed in £1, £5, £10 and £20 denominations, with one Bristol Pound worth exactly £1 sterling.

FSA backing

The schemes is to be administered by the Bristol Credit Union, with whom consumers will have to open an account. This means that the Financial Services Authority (FSA) will underpin the whole scheme and ensure that it will have the same protection as any other deposit account – government protection of up to £85,000 per customer – even though the currency is not actually legal tender.

The equivalent of all the Bristol Pounds in circulation will be held by the Bristol Credit Union as backing for the currency.

The money can either be cashed for notes or used electronically to pay bills online or even with a mobile phone – and since it has the backing of Bristol City Council it can even be used to pay local business taxes, so people are hardly going to need to be worried about being stuck with a large balance in local currency which they cannot use.

‘This will be money created by the people of Bristol for the Bristol people’ said Ciaran Mundy, the director of the Bristol Pound.

‘Big companies just hoover up money from a local area.

‘Massive shops with massive marketing and advertising budgets can easily wipe out local businesses.

‘Money goes into their financial system and typically out into London and into the offshore sector.

‘We’ll be driving to get more money going to independent traders, to ensure we continue to keep the diversity of our city.

‘One of the reasons people love living here is because it’s got a massive number of diverse, independent traders.

‘We also hope that visitors to the city will change a bit of money while they are here.

‘It’s a serious goal, but it will also be a bit of a novelty and fun for tourists.’

Competition to design notes to reflect Bristol

The organisers are holding a competition to help design the new notes which it is hoped will therefore reflect the values and identity of the local community. Security features are naturally to be incorporated to counter forgery – with a silver hologram design, a gold foil strip with embedded serial numbers and other features.

As Mr Mundy says

‘The whole town clone town Britain hasn’t yet happened in Bristol yet, but there have been a lot of independent firms that have struggled.

‘We have seen the shutters go up in and around Bristol’.

‘Sometimes we don’t realise what we’ve got until it’s gone’.

To paraphrase Joni Mitchell, the Bristol Pound is attempting to stop paradise being paved to put up a parking lot.

Bristol, Bristol Credit Union, Bristol Pound, Joni Mitchell, Local Currency, Stroud, Totnes Business Finance & Law, News