Evidence of misuse prompts major Whitehall review of procurement cards
Permanent secretaries have been ordered to assess the allocation of procurement cards to staff and start disciplinary action if misuse is found.
Civil servants could face disciplinary action as part of a major review across Whitehall prompted by concerns that cards used to buy goods and services are being misused.
Permanent secretaries at all Whitehall departments have been ordered to carry out a rapid review of spending on Government procurement cards, including checks on whether everyone who has a card needs one, assessments of approval processes, and disciplinary action when rules have found to be broken.
In a letter seen by the PA news agency to all permanent secretaries from Catherine Little, Civil Service chief operating officer and Cabinet Office permanent secretary, she warned that “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”.
She said: “You are all aware of the guidance we have in place around procurement cards. Despite these provisions and the clear restrictions on the use of these cards, I have 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 current reporting requirements and approvals mechanisms need to be strengthened, and we must collectively take a more stringent approach to controlling expenditure on procurement cards and reducing the numbers issued.”
The move comes amid a focus on Government spending and efficiency as Chancellor Rachel Reeves prepares to deliver the spring statement, a key Government spending review which is set to involve hard choices on taxes and departmental budgets.
Developments in the United States have also ensured the spotlight is on major reforms aimed at shrinking the size of the state, as Elon Musk seeks to slash major projects and staff numbers as head of the Department of Government Efficiency.
This has prompted calls in the UK from those on the right for a similar approach in this country, with Reform UK leader Nigel Farage describing the project as “amazing” as he wished Mr Musk “all the luck in the world and god speed”.
Ms Little said the “revalidation exercise” should include the “delegated financial authority levels in place for approval and spend” and “ensuring everyone who has one really needs one”.
She added: “Other areas of departmental responsibility include how you apply the categories of spend as defined by card providers… for which cards can be used and the thresholds for spend set before further controls are applied, and the process of senior approval for categories of higher risk expenditure.
“Where your teams identify charges are found to be incompatible with departmental guidance you should take action as you deem necessary, including disciplinary action and the revocation of the card in question.”
Ms Little said that while it is the responsibility of individual departments “to control and police” the use of cards, she added: “We will keep expenditure through these routes under close review and will consider reviewing central policy on approved category groups if it should prove necessary.”
The deadline for completing the review and confirming findings and recommendations has been set for March 10.
Ms Little added: “I expect that we will find that ultimately fewer cards should be issued than at present, with more spend routed through central procurement processes; and that once changes have been made we will have higher levels of transparency over our expenditure, and greater confidence that any expenditure through these routes is appropriate.”
