Small firms have denounced controversial plans to axe cheques.

The UK Payments Council, an independent body with strong banking representation, said yesterday (16) that cheque use was in steep decline and would be phased out in 2018 as long as good alternatives were available.

A final decision would be made in 2016. But the proposal to scrap a 350-year old payment method with its origins in Roman times has provoked an outcry.

The Federation of Small Business in Kent and Medway, which has 6,500 members, said cheques were vital to the way many consumers and businesses operated.

It claimed that while usage had declined, millions of cheques were still written every day and many small businesses would be disadvantaged by the decision.

It was disappointed that cheques were due to be phased out from such an early date and said the decision would cause concerns for small businesses that did not have electronic payment systems, and their customers.

Roger House, chairman for the FSB in Kent and Medway said: "It is not for the Payment Council to do the bidding of the banks, which have been against keeping the cheque because of the cost incurred. The council's action will be extremely detrimental to those businesses and their customers that rely on the humble cheque and have now been presented with no viable alternative to it."

However, the Forum for Private Business said that while many members still used cheques, the move could be relatively painless if the banks came up with a simple convenient alternative. It also warned that cheque clearance was expensive and banks would make "ever-greater" charges.