Bank mulls palm oil for new £20 notes after animal fat fivers row

The Bank of England is consulting on the additives used to produce its polymer banknotes after criticism of the use of animal fat in the new fivers.

The Bank used a discussion document on Thursday to say palm oil had been recommended as an alternative - despite environmental concerns over sustainability - for the production of new £20 notes due to enter circulation in 2020.

Animal rights campaigners and vegans were among those to speak out last year, starting a petition when it emerged the Bank's new £5 notes contained a small amount of tallow - derived from beef suet.

The polymer - or plastic - note is gradually replacing old-style paper notes as they are more robust and much harder to counterfeit.

While the Bank said in February it would not be replacing the controversial fivers, or altering its plans for the launch of polymer £10 notes later this year because of the costs involved, it has been working with note suppliers to identify alternatives.

They formed the view that palm oil would be best, the Bank said, though it admitted concerns from a separate independent report it commissioned that production of the vegetable oil has been linked to rainforest destruction.

The consultation document said: "These can be potentially mitigated by the Bank's suppliers acquiring additives that meet an associated certification standard for environmentally sustainable production."

It was also minded to take account of any extra costs and sought responses by 12 May.

The document added: "The Bank will reflect upon the various religious, ethical and environmental considerations raised by the inclusion of animal-derived additives and palm oil as the alternative."