Chancellor George Osborne will go back to the future in his Budget today as he unveils plans for a new £1 coin based on the “threepenny bit”.
He will announce that the 12-sided pound will be the “most secure coin in circulation in the world”, featuring advanced new technology to prevent fakes.
The current £1 coin has been in circulation for more than 30 years, and the Royal Mint estimates about 3% of them – or 45million coins – are forgeries.
Treasury sources were last night linking the move to the Scottish independence referendum, telling Scots that they will have to vote “no” in September to use the new coin when it comes into circulation in 2017.
“If Scotland votes for independence, this will never become legal tender there,” one said.
The original 12-sided “threepenny bit” was in circulation from 1937 until decimalisation came into force in 1971.
A Treasury source said last night: “After 30 years loyal service, the time is right to retire the current £1 coin, and replace it with the most secure coin in the world.
“With advances in technology making high value coins like the £1 ever more vulnerable to counterfeiters, it’s vital that we keep several paces ahead of the criminals to maintain the integrity of our currency.
“I am particularly pleased that the coin will take a giant leap into the future, using cutting edge British technology, while at the same time, paying a fitting tribute to the past in the 12-sided design of the iconic threepenny bit.”
Measures to protect against fraud will include using two colours, as well as a new “integrated secure identification system” which “incorporates three tiers of banknote-strength security and can be authenticated via high-speed automated detection”.
Comment, Page 28