Unlock Editor’s Digest Lock for Free
Ministers are planning to cancel UK government credit cards to thousands of £675 million in response to waste concerns after spending on these accounts over the past five years.
The government will freeze around 20,000 so-called procurement cards, which have been handed out to Whitehall department and agency staff since its introduction in 1997 to purchase the low-value goods and services they need.
Authorities are advised to reapply for taxpayer-funded cards and retain them. Approximately half is expected to be cancelled.
The move follows Ir Kiel Starmaz’s pledge last week, followed by restructuring the state, improving efficiency, reducing backroom costs and reducing backroom costs to pour into frontline services.
The senior official notes that total government procurement cards have more than quadrupled from £155 million in 2020-21 to £675 million in 2024-25.
According to the Cabinet Office, Prime Minister of Lancaster’s Principality Pat McFadden ordered a card review after “examples of unnecessary spending” were revealed.
This included thousands of pounds spent by officers on eating at private members’ clubs, crystal glassware, items from the finest department store Fortnum & Mason, and sparkling wine in English.
In particular, transparency data issued by foreign, federal and development offices recorded eyebrow-raising purchases among government insiders.
£2,479 was spent on the purchase of the FCDO in November 2022 at DJ Superstore, a UK-based DJ equipment dealer. Authorities said it was spent lighting the British embassy in Doha for an event that promotes the UK.
“It’s not right that hundreds of millions of pounds are spent on government credit cards every year without high levels of scrutiny or challenge,” McFadden said. “Only staff who are absolutely essential should have the card.”
Recommended
McFadden added that clampdown will provide savings that will allow them to return to government priorities, such as securing UK borders and improving the NHS.
Starting this month, new curbs will be introduced on approved cards, including a reduction in maximum hospitality spending cuts from £2,500 to £500. If spending is required through new restrictions, you will need to sign off from the Director.
You will also prohibit civil servants from using your card to purchase items with existing departments or cross whitehall procurement routes.
Mandarin is instructed to commence a disciplinary action that discovered that it was found to have been developed in a way that violates official guidance using a taxpayer-funded card.
Diplomatic staff working in conflict zones where government credit cards are required for certain operational purposes will be exempt from freeze.
