History of Banknotes in the United Kingdom

The first Bank of England note to feature a monarch’s portrait did not appear until the 1960s — surprisingly late for a nation whose monarchy is so deeply woven into its identity. The story of how British banknotes evolved is one of financial crisis, innovation, artistic development, and changing ideas about national symbolism.

This article explores that journey, from the founding of the Bank of England in 1694 to the polymer notes of King Charles III.

The Birth of the Bank of England

A Nation in Crisis

Bank of England

The Bank of England was founded in 1694, during a moment of national emergency. Following the English Navy’s defeat at the Battle of Beachy Head in 1690, during the Nine Years’ War, the government urgently needed funds to rebuild the fleet and counter French naval power.

With poor credit and limited borrowing options, the government struggled to raise the required £1.5 million — a vast sum at the time.

William Paterson’s Vision

William Paterson

The idea of a national bank was first outlined in 1691 by William Paterson, a Scottish merchant and financier. In his pamphlet A Brief Account of the Intended Bank of England (1694), he proposed a public, transferable fund of interest, managed by a society of “money’d men” who would lend to the government in exchange for secure, interest‑bearing assignments.

To make the scheme viable, the government needed a reliable source of income to guarantee interest payments. It was decided that tonnage and shipping duties, collected by the Exchequer, would provide this security.

The Tonnage Act and the Royal Charter

The proposal was formalised in the Tonnage Act of 1694, which authorised raising £1.5 million for the war effort through duties on shipping, beer, ale, and other liquors.

On 27 July 1694, King William III granted a Royal Charter to the new Bank of England in return for a £1.2 million loan to stabilise the nation’s finances. Remarkably, the full subscription was raised within ten days.

The Bank began life as a private institution, owned by its subscribers. It remained privately owned until its nationalisation in 1946.

Early Banknotes

Banknotes in England date back to the 1660s, but the Bank of England began issuing its own notes shortly after its founding.

Key Milestones in Early Banknote History

• 

  1697 Bank Note

  1697 – The Bank issued “running cash notes,” early predecessors of modern banknotes, and the first to include the promise to “pay the bearer on demand.”
• 1732 – The first £50 notes were printed, featuring the Britannia medallion and the words “Promise to Pay.”
• 1767 – “Accountable Notes” were introduced for customers depositing money with the Bank.

• 

  1793 £5 bank note

  1793 – During the French Revolutionary Wars, gold shortages prompted the Bank to issue the first £5 notes, which remained in circulation until 1957.
• 1855 – Artist Daniel Maclise redesigned the Britannia medallion used on notes.

Until the Bank Charter Act of 1844, privately owned banks across Great Britain and Ireland could issue their own notes. The Act restricted this right exclusively to the Bank of England, preventing new banks from entering the note‑issuing market and laying the foundation for a unified national currency.

Monarchs on Banknotes

Although monarchs appeared earlier on Scottish banknotes (including George II, George III, and George IV), and George V appeared on British Treasury notes between 1914 and 1928, the Bank of England itself did not feature a reigning monarch until 1960.

The first portrait was that of Queen Elizabeth II, marking a major shift in the visual identity of British currency.

Banknote Series and Designs

The Bank of England’s modern notes are organised into “series,” each with its own artistic style, security features, and historical figures.

Series C (1960s–1970s)

The first to feature Queen Elizabeth II.

• £1 – Sir Isaac Newton

About the £1 Sir Isaac Newton Banknote Issued – 9th February 1978 Withdrawn – 11th March 1988 Reverse – Sir Issac Newton with telescope, prism, and scientific diagrams Obverse – Queen Elizabeth II in court robes

 

• £5 – Duke of Wellington

About the £5 Duke of Wellington Banknote Issued – 11th February 1971 Withdrawn – 29th November 1991 Reverse – Wellington appears in an ornate military uniform with the Order of the Garter star, set against a vivid battle scene of soldiers, cannons, and cavalry that evokes the Battle of Waterloo. Obverse – Queen Elizabeth II wearing the Garter Mantle

 

• £10 – Florence Nightingale

About the £10 Florence Nightingale Banknote Issued – 20th February 1975 Withdrawn – 31st May 1994 Reverse – Florence Nightingale is shown in Victorian nursing attire with a bonnet and striped dress. She holds her iconic lamp while tending wounded soldiers in an arched brick hospital ward, with nurses and doctors assisting in the background. Obverse – Queen Elizabeth II wearing the Garter Mantle

 

• £20 – William Shakespeare

About the £20 William Shakespeare Banknote Issued – 9th July 1970 Withdrawn – 19th February 1993 Reverse – William Shakespeare is shown in Elizabethan attire. He stands beside a pedestal with sculpted busts. The scene is inspired by Romeo and Juliet. It shows Juliet on a balcony and Romeo reaching up to her. The design echoes his Westminster Abbey memorial. Obverse – Queen Elizabeth II wearing the Garter Mantle

 

• £50 – Sir Christopher Wren

About the £50 Sir Christopher Wren Banknote Issued – 20th March 1981 Withdrawn – 20th October 1996 Reverse – Sir Christopher Wren is shown in 17th-century attire with long curls and a cloak. He holds architectural plans or a manuscript. St Paul’s Cathedral is prominently featured. The London cityscape includes domes and spires. A floor plan of the cathedral appears below. Decorative elements include a compass rose and sunburst motif. Obverse – Queen Elizabeth II wearing the Garter Mantle

 

Portraits of the Queen in this series showed her wearing the Garter mantle and Diamond Diadem, designed by Harry Eccleston, the Bank’s first full‑time artist‑designer.

Series E (1990s)

More modern engraving and updated security features.

• £5 – George Stephenson

About the £5 George Stephenson Banknote Issued – 7th June 1990 Withdrawn – 21st November 2003 Reverse – depicts George Stephenson (1781–1848), the pioneering “Father of Railways,” shown beside his 1829 Rocket locomotive—winner of the Rainhill Trials—set against early railway infrastructure that reflects Britain’s industrial innovation.                             Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Roger Withington

 

• £10 – Charles Dickens

About the £10 Charles Dickens Banknote Issued – 29th April 1992 Withdrawn – 31st July 2003 Reverse – mature profile portrait of Charles Dickens (1812–1870), set above a vignette of scenes drawn from Oliver Twist, A Christmas Carol, and The Pickwick Papers, all reflecting the themes of Victorian London, social reform, and his enduring literary legacy. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Roger Withington

 

• £20 – Michael Faraday

About the £20 Michael Faraday Banknote Issued – 5th June 1991 Withdrawn – 28th February 2001 Reverse – depicts Michael Faraday (1791–1867), shown alongside imagery of his pioneering laboratory demonstrations, including early experiments with electromagnetic induction, electric currents, and magnetic fields—scenes that highlight his groundbreaking discoveries in electricity and the foundations of modern electromagnetic science. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Roger Withington

 

• £50 – Sir John Houblon

About the £50 Sir John Houblon Banknote Issued – 20th April 1994 Withdrawn – 30th April 2014 Reverse – Sir John Houblon alongside a finely engraved depiction of Houblon’s House—his 17th‑century residence on Threadneedle Street—rendered with architectural precision to reflect the building’s historical significance as part of the early landscape surrounding the Bank of England. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Roger Withington

 

The Queen’s portrait in this series depicted her wearing the Girls of Great Britain and Ireland Tiara, designed by Don Ford.

Series E (Variant)

Updated designs and new historical figures.

• £5 – Elizabeth Fry

About the £5 Elizabeth Fry Banknote Issued – 21st May 2002 Withdrawn – 5th May 2017 Reverse – portrays Elizabeth Fry (1780–1845), the pioneering prison reformer, shown alongside scenes of her compassionate work at Newgate Prison, where she organised education, sewing groups, and humanitarian support for women and children—imagery that reflects her profound influence on social reform and the improvement of prison conditions in 19th‑century Britain. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Roger Withington

 

• £10 – Charles Darwin

About the £10 Charles Darwin Banknote Issued – 7th November 2000 Withdrawn – 1st March 2018 Reverse – Charles Darwin (1809–1882), accompanied by a hummingbird and flowering plant symbolising natural selection, the HMS Beagle representing his transformative voyage, and a magnifying glass motif highlighting his dedication to scientific observation. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Roger Withington

 

• £20 – Sir Edward Elgar

About the £20 Sir Edward Elgar Banknote Issued – 22nd June 1999 Withdrawn – 30th June 2010 Reverse – Sir Edward Elgar (1857–1934), facing left, with Worcester Cathedral in the background referencing his birthplace, and a musical manuscript and conductor’s baton motif symbolising his legacy as one of Britain’s greatest composers. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Roger Withington

 

• £50 – never designed

Series F

The last paper notes before the polymer era.

• £20 – Adam Smith

About the £20 Adam Smith Banknote Issued – 13th March 2007 Withdrawn – 20th September 2022 Reverse – The reverse features a portrait of Adam Smith (1723–1790), the Scottish economist and philosopher, alongside an industrial scene depicting the division of labour in pin manufacturing, with a quote highlighting the productivity gains of specialised work: “The division of labour in pin manufacturing: and the great increase in the quantity of work that results.” Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Tom Phillips

 

• £50 – Matthew Boulton & James Watt

About the £50 Matthew Boulton & James Watt Banknote Issued – 2nd November 2011 Withdrawn – 30th September 2023 Reverse – features portraits of Matthew Boulton (1728–1809) and James Watt (1736–1819), set against the Soho Manufactory in Birmingham where they collaborated, with steam‑engine imagery and engineering motifs, and includes Boulton’s celebrated declaration: “I sell here, Sir, what all the world desires to have – POWER.” Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Tom Phillips

 

Series G I – Queen Elizabeth II (Polymer Notes)

The first polymer notes in the UK.

• £5 – Winston Churchill

About the £5 Winston Churchill Banknote Issued – 13th September 2016 Withdrawn – Reverse – portrait of Sir Winston Churchill (1874–1965), facing forward, with the Palace of Westminster and Big Ben set to 3:00 pm in the background—marking the time of his “We shall fight on the beaches” speech—and includes his iconic quote: “I have nothing to offer but blood, toil, tears and sweat,” alongside a Nobel Prize medal motif referencing his 1953 Nobel Prize in Literature. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Timothy Noad

 

• £10 – Jane Austen

About the £10 Jane Austen Banknote Issued – 14th September 2017 Withdrawn – Reverse – portrait of Jane Austen (1775–1817), facing slightly left, with background imagery including Winchester Cathedral—where she is buried—a seated figure of Britannia symbolising literature, an open book motif, and the quote “I declare after all there is no enjoyment like reading!” spoken by Miss Bingley in Pride and Prejudice. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Dominic Barlow

 

• £20 – J. M. W. Turner

About the £20 J.M.W. Turner Banknote Issued – 20th February 2020 Withdrawn – Reverse – portrait of J. M. W. Turner (1775–1851), facing forward, with background imagery including his painting “The Fighting Temeraire” (1839)—a tribute to the sailing ship HMS Temeraire—alongside his signature taken from his will, the quote “Light is therefore colour” from one of his lectures, and a holographic depiction of the Turner Contemporary Gallery in Margate. Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Dominic Barlow

 

• £50 – Alan Turing

About the £50 Alan Turing Banknote Issued – 23rd June 2021 Withdrawn – Reverse – portrait of Alan Turing (1912–1954), facing forward, with background imagery including mathematical formulas from his 1936 paper “On Computable Numbers,” a schematic of the Bombe machine used to break the Enigma code during WWII, his signature taken from the visitor’s book at Bletchley Park, binary code representing his birth date, a ticker tape with his name, and the quote “This is only a foretaste of what is to come, and only the shadow of what is going to be.” Obverse – Queen Elizabeth II, depicted using the 1990 Maklouf effigy, a finely detailed portrait known for its youthful profile and crisp engraving style. Artist – Dominic Barlow

 

These notes introduced advanced security features and a new era of durability.

Series G II – King Charles III (Polymer Notes)

The first Bank of England notes to feature King Charles III.

Issued in 2024, these notes retain the same reverse designs as the Elizabeth II versions:

• £5 – Winston Churchill
• £10 – Jane Austen
• £20 – J. M. W. Turner
• £50 – Alan Turing

Only the portrait of the monarch has changed, marking the beginning of a new chapter in British currency.

The Future of Money

From handwritten promises to pay, to engraved paper notes, to today’s secure polymer designs, the history of British banknotes reflects the evolution of society, technology, and monarchy.

As digital payments continue to grow, the future of physical money remains an open question. Yet banknotes still carry cultural weight — they are miniature works of art, historical documents, and symbols of national identity.

Whether in wallets or museums, they tell the story of Britain’s financial and artistic heritage.