In an attempt to curb wasteful spending, the Labour government’s plan to cancel thousands of procurement cards raises questions about genuine fiscal responsibility.
In a misguided attempt to tackle what it deems wasteful spending, the Labour government is planning to cancel thousands of government credit cards as part of an initiative that raises more questions than it answers. The Cabinet Office intends to affect nearly all of the estimated 20,000 Government Procurement Cards (GPCs) currently in use, citing a significant increase in spending that soared from £155 million in 2020/21 to over £675 million in 2024/25—an alarming rise that highlights the mismanagement of public funds under the previous leadership, but will likely continue under Starmer.
This order to freeze these cards, beginning this week, forces civil servants to justify their needs in a move that seems more symbolic than substantive. The expectation to cut GPCs in circulation by at least 50% appears to be a reaction to public outcry over Labour’s irresponsible fiscal strategies rather than a genuine commitment to fiscal conservatism.
The increase in spending on these cards has been spotlighted by appalling expenditures documented from the Foreign Office. Among these insidious examples, officials charged nearly £2,500 at a shoe store in Barbados, alongside nearly £3,000 spent at an art deco cinema in New Zealand and absurd amounts on life-size celebrity cardboard cutouts. Additional reports reveal that it wasn’t just luxury footwear and entertainment that consumed taxpayer money; approximately £87,000 was spent on hotel accommodations for officials attending Prince William’s Earthshot ceremony in South Africa. Moreover, a staggering £49,511 was squandered on alcohol over just a few months, underscoring the reckless abandon with which this government has handled public finances.
The new regulations, while reducing the maximum for hospitality spending from £2,500 to £500, merely serve to mask the broader systemic issues within Labour’s approach to expenditure. The notion that officials will now require approval from senior staff for spending beyond this new threshold does little to address the underlying lack of accountability that has allowed such extravagance to flourish.
Pat McFadden, Cabinet Office minister, was quoted saying, “We must ensure taxpayers’ money is spent on improving the lives of working people.” However, the irony is hard to miss—Labour has shown a shocking disregard for those very taxpayers by allowing their officials to indulge in lavish expenses at the public’s cost.
This crackdown is not just a gesture but a reflection of a government striving to maintain a facade of efficiency amid rising scrutiny and discontent over its handling of public resources. As civil servants face a tighter grip on government-issued financial tools, the public should remain vigilant. The real question remains whether this administration can genuinely pivot from its reckless past, or if it will simply continue to exploit taxpayer funds under the guise of reform. A serious overhaul of public spending must address the root causes of waste and inefficiency, rather than just putting a façade over the same old problematic practices.
Source: Noah Wire Services
- https://www.gov.uk/government/publications/government-procurement-card-data–2 – This URL provides data on Government Procurement Card spending over £500, which supports the claim about the increase in spending on these cards and the government’s efforts to manage them.
- https://www.statista.com/statistics/283892/united-kingdom-uk-monthly-value-of-credit-card-purchase-transactions/ – Although not directly related to Government Procurement Cards, this URL provides context on credit card spending trends in the UK, which can inform discussions about government spending habits.
- https://www.mastercard.com/news/media/geyh3glf/ukc-032439_value-of-card-payments_3_lowres.pdf – This report discusses the economic impact of card payments in the UK, which indirectly relates to the broader context of card usage and spending management.
- https://www.noahwire.com – This is the source article itself, which details the Labour government’s plans to cancel thousands of government credit cards due to concerns over wasteful spending.
- https://www.co.matagorda.tx.us/upload/page/5703/texas-rules-of-civil-procedure.pdf – This URL does not directly support the article’s claims but is included as it was part of the search results; however, it is unrelated to the topic.
- https://pmc.ncbi.nlm.nih.gov/articles/PMC10311201/ – This URL does not directly support the article’s claims; it discusses digital evidence in criminal cases and is unrelated to government spending or credit cards.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative references recent spending figures up to 2024/25, indicating relatively current information. However, it criticises past spending under previous leadership without specifying recent changes, which could suggest some elements are not entirely fresh.
Quotes check
Score:
6
Notes:
The quote from Pat McFadden, Cabinet Office minister, could not be verified as the earliest known reference online. It is plausible but lacks confirmation from other sources.
Source reliability
Score:
7
Notes:
The narrative originates from the Mirror, a well-known publication, but its reliability can vary depending on the topic and political bias. Generally, it is considered a mainstream source but may have a specific perspective.
Plausability check
Score:
8
Notes:
The claims about government spending and the crackdown on credit cards are plausible given recent political pressures on fiscal responsibility. However, specific examples of extravagant spending might require additional verification.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative appears to be relatively fresh with current spending figures, but some elements lack verification. The source is generally reliable but may have a political bias. Claims are plausible but require further confirmation for absolute accuracy.
