The UK government has announced plans to cancel thousands of taxpayer-funded credit cards as part of a crackdown on “wasteful” spending. Government procurement cards, designed for low-value purchases, have seen spending quadruple in the past four years, with insufficient scrutiny. The Cabinet Office will freeze nearly all of the 20,000 cards in circulation, aiming to reduce their number by 50%. Cardholders must justify their need or face cancellation by the end of the month, with only a few exceptions, such as diplomatic staff in unstable environments.
The maximum spend for hospitality will also be cut from £2,500 to £500, requiring senior civil servant approval for higher amounts. Recent spending examples include £2,500 at a women’s shoe shop in Barbados and £1,200 on luxury coffee pods. Departments have been instructed to take disciplinary action against inappropriate spending.
This move is part of broader efforts to reduce government waste, ahead of Chancellor Rachel Reeves’ Spring Statement, which is expected to include significant spending cuts. Labour has previously criticized Conservative “lavish spending” on procurement cards, but recent reports suggest Labour ministers have also used the cards for luxury expenses, sparking accusations of hypocrisy.
Cabinet Office minister Pat McFadden emphasized the need to ensure taxpayer money is spent responsibly, redirecting essential spending to more cost-effective procurement routes. The Conservatives have defended their record on transparency and cutting wasteful spending, while accusing Labour of inconsistency.
For more political updates, visit London Pulse News.
