Kingston upon Thames to get its own local currency

A new currency could provide a much-needed injection of cash to the local economy of Kingston. Here's how it will work.

Kingston upon Thames could be set to get its own currency, the Kingston Pound, in an effort to boost the local economy.

It will be trialled in May 2014 and follows in the footsteps of Bristol, Brixton, Stroud, Totnes and Lewes which have all successfully launched their own money.

The organisers aim to have 100,000 in circulation by 2016.

The Kingston Pound

The Kingston Pound project is a community scheme which aims to strengthen the borough’s economy.

For every £1 spent in the local community, around 10p-20p actually stays in the area. With the new currency 100% is kept and reinvested into local businesses and communities.

When you spend the new money in a shop, it then uses the same currency to buy its stock. In areas such as Bristol, where a new currency has been already set up, retailers are required to pay extra to convert it back into sterling but it hasn't been confirmed how this will work in Kingston.

So if local people are spending the Kingston Pound, both in shops and online, it guarantees the money is kept in the local economy.

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How does it work?

In practical terms it will be set up as a non-profit partnership which will work alongside the community group Surrey Save Credit Union (SSCU). It has already been given official backing by the local council and is set to be trialled next year.

The credit union will manage the accounts and transactions and be a multi-stakeholder co-operative board with trader and individual representatives.

Several areas of the UK now have their own currency. In Bristol, for example, hundreds of local businesses have signed up since it was launched in September 2012.

Being a member is a clear way for traders to differentiate themselves from large multi-national companies. There is also a discount scheme in place, giving members exclusive offers when using the Bristol Pound.

How Kingston will benefit

If the number of independent traders increases, people will be more likely to spend in them.The idea is that this will mean the numbers of betting shops and chain retailers will drop off and the streets will be reclaimed by local traders.

A new currency will also help the local credit union. It’s currently part of a UK-wide mission to stamp out payday lenders and provide an affordable alternative for those in need of a loan.

The Kingston Pound is also being promoted as a way to reignite the community spirit and create a link with various groups and voluntary organisations.

Would a local currency make you more likely to spend money with local stores? Do you want one in your area? Let me know your thoughts in the comment box below.

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