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A new crackdown on government credit card abuse has been announced as chancellor Rachel Reeves tries to tighten spending controls ahead of a difficult spring budget.
In a letter to Whitehall departments, Cat Little, Civil Service chief operating officer and Cabinet Office permanent secretary, warned that disciplinary action would be taken where abuse of credit cards is discovered.
It comes after thousands of pounds were said to have been spent on luxury crystal glasses, cases of sparkling wine and thousands of pounds at private members’ clubs, Mail Online reports.
The crackdown was announced less than a fortnight after questions were raised about Ms Reeves own use of a company credit card when she worked for Halifax Bank of Scotland (HBOS).
Under the move, cards will also be revoked, while the civil service also been asked to check whether everyone who has a card actually needs one and cancel those that aren’t required.
In the letter, Ms Little wrote she had been “concerned to see examples of expenditure using these purchasing cards, which on the face of it look difficult to justify based on our approved guidelines”.
The minister demanded a “more stringent approach” to controlling spending on the cards and slashing their numbers. Mandarins were told to conduct a “rapid review” of all the cards in their department by March 10.
“Public trust in Government is hard won and easily lost, and our fiduciary duty in managing taxpayers’ money is a core element of this trust”, Ms Little said.
The move comes amid a focus on government spending and efficiency as Ms Reeves prepares to deliver the spring statement, a key government spending review which is set to involve hard choices on taxes and departmental budgets.
But there is growing pressure on the chancellor following allegations she used company expenses in a former job to buy handbags, perfume, earrings and wine for colleagues, and exaggerated her Bank of England experience on her CV.
Before entering parliament, the chancellor was one of three employees allegedly investigated by HBOS for using her expenses to “fund a lifestyle” with inappropriate spending on dinners, events, taxis and gifts, a BBC investigation has claimed.
The broadcaster uncovered documents it said showed Ms Reeves was accused of spending hundreds of pounds on the items, including one gift for her boss. Concerns were reportedly raised about her spending on taxis and on a Christmas party, with one whistleblower believing it to be excessive, the corporation said.
The BBC investigation also found Ms Reeves stopped working for the Bank of England nine months earlier than it stated on her LinkedIn profile.
Sir Keir Starmer backed Ms Reeves, and his official spokesperson said the prime minister has no concerns about her conduct.
Meanwhile, a spokesperson for Ms Reeves said she left HBOS in 2009 “on good terms”.
“Rachel is proud of the work she did at HBOS and the teams that she led. It is 16 years since she left the bank and the first time she was made aware of these claims was when approached by journalists,” they said.
“She was not aware of an investigation, nor was she interviewed, and she did not face any disciplinary action on this or any other matters. All expenses were submitted and signed off in the proper way.
“Several former colleagues from her time at the bank, including HBOS’s former HR business partner, have corroborated this account.”
