It actually happened to me once, when I was in London dining in a restaurant. I wanted to pay in cash that I withdrew in Scotland and the lady did decline the money I gave her.
Pretty wild for me as a German doing a little trip through the UK.
Very German thing to do, yet in the UK I have not had a need to pay in cash, just use your card (or phone/watch if you are into that). Dunno if it was the money type, or just not want to be dealing with cash per se.
