Business cash deposits in the UK reached a record high at the start of the summer, increasing by nearly £69 million compared to the same period last year, according to the Post Office. This 2% rise marks the largest annual growth in business cash deposits on record, driven by a combination of warmer weather and a busy schedule of sports events.

The Post Office attributed the surge to consumers’ increased use of cash for everyday, lower-value purchases commonly associated with summer activities. Spending on items such as drinks, snacks during sporting events, pub visits, local shopping, family outings, and travel appear to have contributed to the heightened demand for cash on UK high streets. The organization also suggested that households may be withdrawing more cash to monitor spending closely amid rising living costs.

In addition to higher business deposits, personal cash withdrawals rose by 4% between April and June, approaching seven million transactions during the quarter. This trend reflects ongoing consumer reliance on cash despite the widespread availability of digital payment methods.

At the local level, Copperhouse Post Office in Hayle, Cornwall, reported sustained demand for cash services. Sarah Ellis, the branch manager, noted that many businesses in the area operate on a cash-only basis and that customers often find cash helpful for budgeting purposes.

Ben Hunter Woollard, head of banking at the Post Office, emphasized the continued importance of cash to UK businesses. He stated that these record deposits demonstrate that cash remains a vital component of business operations nationwide, particularly during periods of increased social activity.

Overall, the data highlight the enduring role of physical currency in daily transactions, especially amid seasonal factors such as heatwaves and major sporting events that stimulate consumer spending.