The Lake District will launch its own £1, £5 and £10 notes in a bid to boost tourism.
The ‘Lake District Pound’ will have the same value as sterling but is only redeemable at local shops and businesses – like ‘Disney Dollars’ used in US theme parks.
The scheme is an effort to boost tourism and local businesses and also generate funds for two Cumbrian charities.
It comes after funding to the national park has recently fallen by more than 40 per cent.
The ‘Lake District Pound’ will have the same value as sterling but is only redeemable at local shops and businesses – like ‘Disney Dollars’ used in US theme parks
The Lakes Currency Project is an independent, private company run by Ken Royall, of Windermere, who started it to contribute something to the local area.
In spring, they will launch a paper currency consisting of Lake District-themed £1, £5, £10 and £20 notes which can be exchanged one-for-one with sterling.
But they can only be spent in participating businesses that are locally owned, trade locally and were either founded in, or unique to the area.
They will be valid for a year and the designs are being kept under wraps until the official launch later this year.
He said: ‘First and foremost the Lake District pound is going to be a fun way for people to discover and enjoy the unique local culture we have on offer in the Lakes.
‘People can buy the notes one for one with sterling and then spend them in local retailers, cafes, restaurants and tourist attractions.
‘As well as driving footfall to all our fantastic local businesses, this will also be a great way for people to explore the unique character of the area and connect with its people.
‘We hope that by encouraging more people to use our local businesses, the Lake District pound will not only strengthen our local economy but add to the region’s sense of identity and pride in itself.
‘There are many incentives for people to buy and use these notes.
‘Firstly, they are visually striking, with each note telling the story of different aspects of the character of the Lake District, its heritage, landscape and people.
‘It would be impossible to tell the Lake District’s story in just one set of notes, so we will be launching new designs every year.
The scheme is an effort to boost tourism and local businesses and also generate funds for two Cumbrian charities
‘Secondly, by using the Lake District currency people will know they are helping support unique local businesses, which we know are the fabric of our communities – we believe this will be a great incentive in itself.
‘Lake District Pounds can be spent, respent, or swapped back to sterling at any time during their period of validity.’
If people buy the notes as souvenirs and do not spend them, proceeds will be split between charitable organisations Cumbria Community Foundation and the newly formed Lake District Foundation.
Mr Royall added: ‘The further incentive for local businesses is that we will be driving footfall to their premises and providing a high profile way to promote them to visitors.’
Mr Royall said they have also developed a souvenir book telling the story of the notes and the people and places featured on them.
Lake District Pound outlets would be able to sell these and other merchandise alongside the notes to create revenue.
People will be able to buy the notes from outlets across the Lake District, including many Post Offices.
Mr Royall said: ‘When Lake District Pounds are sold into circulation, their face value is immediately protected in a Sterling Reserve Account.
‘So that there’s no risk to local businesses who accept the currency.
‘These businesses can deposit their notes at participating Post Offices, which will transfer the equivalent amount in sterling straight to their bank account.’
Post Office HQ has agreed with the Lakes Currency Project that postmasters can use the Post Office Counter to exchange Lake District Pounds and deposit the same amounts in the customers’ high-street bank accounts as sterling.
Mr Royall said they have also developed a souvenir book telling the story of the notes and the people and places featured on them
Mr Royall said: ‘We have additionally put systems in place specifically to make sure that Post Offices do not run out of cash to exchange for Lake District currency.
‘The Lake District Currency will be valid for a calendar year and until January 31.
‘The new notes will be available each year from the beginning of December which means that anyone who wants to swap old notes for new ones can do so.
‘People can exchange their Lake District currency back to sterling at any time during their visit to the area.
‘If they aren’t able to exchange their notes for sterling before they leave the area they can contact us directly to send us the notes so we can do it electronically.
‘We don’t want anyone to have to take home unused Lake District Pounds if they don’t want to.
‘However, we do know that our notes will create a very special souvenir.’
One of the first people to sign up to the project was Laura Johnson, owner of ‘Laura in the Lakes Cafe and Catering’ and ‘Cakes from the Lakes’, in Keswick.
Mrs Johnson said: ‘The majority of our customers are tourists, and lots of children and families.
‘You can just imagine a child coming in and spending their tourist notes on something that is made in the Lake District.
‘I can see that people would definitely want to keep them.
‘For that money to go into a pot that helps the environment and people just makes it a no-brainer.
‘It’s a really exciting project and I couldn’t be more supportive.’
Robin Love, postmaster at Ambleside Post Office, said: ‘It will hopefully bring more people through the door to spend money on goods.
‘I have seen lots of things come and go in the past 20 odd years and some of them last a year or so, but I think it’s worth backing this.’
The Lakes Currency Project has received start-up funds from a range of private, local investors.
Richard Leafe, the park’s director, said: ‘If people take the money away with them (and don’t spend it), the money is effectively left in the National Park.’