The Lake District will become the first region in the UK to launch its own currency as part of an innovative initiative to boost local, independent businesses and generate funds for two vital Cumbrian charities.

The Lakes Currency Project is an independent, private company run by Ken Royall and an experienced local team.

In spring the company will launch a paper currency consisting of special Lake District themed notes, with designs reflecting the unique character of the culture, landscape and people of the Lake District and Cumbria.

Mr Royall said the £1, £5, £10 and £20 Lake District notes will be exchanged one for one with Sterling, but can only be spent in participating businesses that are locally owned, trade in the local area and were either founded in, or unique to the area.

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.

“The Lake District and Cumbria are understandably favourite holiday destinations for people from around the world, with more 18.5 million visiting the Lakes alone last year.  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, Cumbria and the region’s 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 exciting new designs every year.

“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. Finally, we have developed a number of ways of ensuring using the local currency is an engaging and fun experience.

“Lake District Pounds can be spent, re-spent, or swapped back to Sterling at any time during their period of validity. But we know some people will purchase the notes as souvenirs, just like they might collect stamps or other currencies. If they do, this will create proceeds for the company which we will split 50/50 between the Cumbria Community Foundation - which helps fund so many wonderful projects in the county - and the newly formed Lake District Foundation, which supports projects to conserve our natural environment. Again, we believe this sense of taking part in something that helps the people and area will be a strong driver for visitors to be involved in the project.