UK Freezes Government Credit Cards to Tighten Spending Controls

​The UK government has initiated a significant overhaul of its procurement practices by freezing nearly all of its 20,000 Government Procurement Cards (GPCs).

This decisive action aims to tighten financial oversight and curb expenditures, reflecting a commitment to fiscal responsibility.​

Led by the Cabinet Office and Chancellor of the Duchy of Lancaster, Pat McFadden, this initiative requires civil servants to reapply for GPCs under stricter scrutiny, with expectations that at least half of the cards will be permanently canceled by month’s end.

Only essential cards, such as those used by diplomatic staff in volatile regions, are exempt from this freeze.​

The move comes in response to escalating expenses, with GPC spending surpassing £600 million in the last financial year—a figure that has quadrupled over four years.

Departments are now directed to authorize only the minimum number of new cards necessary, emphasizing a strategic approach to expense management.​

Chancellor McFadden emphasized the importance of this measure, stating, “We must ensure taxpayers’ money is spent on improving the lives of working people.

It’s not right that hundreds of millions of pounds are spent on government credit cards each year, without high levels of scrutiny or challenge. Only officials for whom it is absolutely essential should have a card.”​

This clampdown is part of a broader strategy by Prime Minister Keir Starmer to reshape Whitehall operations and eliminate inefficiencies. The agenda has already led to the abolition of certain government bodies, resulting in significant job reductions.​

For treasury and finance professionals, this development underscores the critical importance of robust expense management systems and the need for continuous evaluation of procurement practices.

The UK’s approach serves as a case study in balancing operational flexibility with stringent financial controls, highlighting the necessity for transparency and accountability in managing public funds.