Doomed cheques "need stay of execution"

Cheques are in "irreversible decline" but will not be abandoned until proper alternatives are available for all, an official report has said.

The National Payments Plan sets out a 'strategic vision' for how all forms of transactions should be managed in the UK. It has been published by the Payments Council, which consulted with the payments industry and its users between November 2007 and February 2008.

One of the major issues considered by the council was the continued use of bank cheques.

Chairman Brian Pomeroy said that "the future of the cheque attracted the most comments from respondents and our diagnosis that the cheque is in irreversible decline went almost unchallenged".

"However, we are fully aware that alternative arrangements to cheques have to be available before the closure of the cheque clearing service can be seriously contemplated."

The decision has been hailed as a victory for smaller businesses by the Forum for Private Business (FPB).

"[Our] research and anecdotal evidence shows that, even in a world filled with electronic telecommunications, many small businesses, including start-ups, still rely on cheque payments," said the FPB's Philip Moody.