The introduction of the new £1 will spark chaos for people trying to park their cars, as tens of thousands of machines will not be ready to accept the coins in time, the British Parking Association has warned.

The organisation told the Daily Telegraph that a "big queue" for modification means around a quarter of Britain's 100,000 parking meters will not have been updated in time for the new pound's debut.

The 12-sided coin will enter circulation on March 28, six months before the current £1 is phased out in October. During this time both coins will be accepted as legal tender.

But this newspaper has established that the Royal Mint has already begun the process of withdrawing round £1's meaning they are already reducing in number.

Since Christmas it has so far withdrawn 50 million coins, representing 3pc of the total in circulation, meaning people are already less likely to find them in their wallets.