Crackdown on authorities playing cards to chop ‘wasteful’ spending

1000’s of taxpayer-funded bank cards shall be cancelled underneath plans to crack down on “wasteful” spending, the federal government has introduced.

Authorities procurement playing cards have been designed as a handy technique to make low-value, one-off purchases.

Nevertheless, the federal government mentioned spending on the playing cards had quadrupled previously 4 years with out sufficient scrutiny.

The Cupboard Workplace will order departments to freeze virtually the entire round 20,000 playing cards in circulation this week, with a strict new utility course of aiming to chop the quantity by 50%.

Cardholders should justify their want or see them cancelled by the tip of the month.

Solely a small variety of playing cards, used for particular functions equivalent to by diplomatic employees working in unstable environments, shall be exempt from the freeze.

In the meantime, the utmost spend for hospitality – usually utilized by officers working in commerce or diplomatic roles – shall be lower from £2,500 to £500.

Any spending over this quantity would require the approval of a senior civil servant.

Greater than £675m was spent on the playing cards by central departments and core companies final 12 months, up from £155m in 2020/21.

Purchases included £2,500 spent by UK diplomats at a ladies’s shoe store in Barbados and £1,200 on luxurious espresso pods by one crew in two months.

The place departments establish examples of inappropriate spending, they’ve been informed to take disciplinary motion.

The transfer is a part of a wider effort to chop spending and waste throughout authorities.

It comes as Chancellor Rachel Reeves prepares to ship her Spring Assertion subsequent week, which is predicted to incorporate billions of kilos price of spending cuts.

In a speech final week Sir Keir Starmer promised to make the “flabby” state extra environment friendly and lower forms.

Cupboard Workplace minister Pat McFadden mentioned: “We should guarantee taxpayers’ cash is spent on enhancing the lives of working individuals.

“It is not proper that tons of of tens of millions of kilos are spent on authorities bank cards annually, with out excessive ranges of scrutiny or problem. Solely officers for whom it’s completely important ought to have a card.”

The federal government mentioned it was aiming to redirect important spending into extra acceptable procurement routes, the place objects or companies are bought at scale, delivering higher worth for cash.

When Labour was in opposition it accused the Conservative authorities of overseeing “lavish spending” on lodges, hospitality and different prices utilizing procurement playing cards.

Nevertheless, final month the Occasions reported that hundreds of kilos had been spent by way of the playing cards on issues like meals at non-public members’ golf equipment and luxurious crystal glasses underneath the brand new Labour authorities, prompting claims of hypocrisy.

A Conservative Celebration spokesman mentioned: “Conservatives will all the time help reducing waste throughout authorities, and we’ll all the time help measures to cease the frivolous spending of taxpayer cash.

“However this can be a bit wealthy coming from the celebration – Labour – that did nothing to cease spending sprees through which Labour ministers wasted hundreds of kilos of taxpayer cash at excessive finish eating places and casinos. It was Conservative authorities that took the primary steps to extend authorities procurement card transparency and lower nonsense spending.”