Journalist Becky Morton reports on the government’s plan to cancel thousands of taxpayer-funded credit cards in an effort to combat “wasteful” spending. Government procurement cards, initially intended for low-value, one-time purchases, have seen a sharp increase in spending over the past four years without adequate oversight. The Cabinet Office is taking measures to freeze nearly all of the approximately 20,000 cards currently in use, with a new stringent application process aimed at reducing the number by half.
Under the new guidelines, cardholders will be required to justify the necessity of their cards by the end of the month, with only a select few exemptions for specific purposes. Additionally, the maximum spending limit for hospitality, typically utilized by officials in trade and diplomatic roles, will be slashed from £2,500 to £500. Approval from a senior civil servant will now be mandatory for any expenditures exceeding this amount. Last year alone, central departments and core agencies collectively spent over £675m on these cards, a dramatic increase from £155m in the previous fiscal year.
The decision to tighten controls on government credit card spending forms part of a broader initiative by Chancellor Rachel Reeves to implement extensive spending cuts. Opposition leader Sir Keir Starmer has pledged to streamline the government bureaucracy and enhance efficiency. Cabinet Office minister Pat McFadden stressed the importance of allocating taxpayers’ money towards initiatives that benefit the working population, emphasizing that government credit cards should only be held by individuals for whom they are absolutely indispensable.
In response to allegations of lavish spending on procurement cards, the Labour Party has faced accusations of hypocrisy, as reports emerged of significant expenditures under the new government. A Conservative Party spokesperson reiterated their commitment to eliminating wasteful government spending and criticized Labour for failing to prevent excessive expenditures during their time in office. The ongoing debate surrounding government credit card usage highlights the ongoing efforts to promote fiscal responsibility and accountability within the UK government
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