The UK government is set to freeze thousands of government-issued credit cards this week as part of its efforts to rein in public spending, the Labour administration announced.
The move comes amid attempts to stabilize strained public finances and adhere to fiscal rules limiting borrowing.
With economic growth slowing, ministers are looking for ways to cut budgets. Significant welfare reductions are expected on Tuesday ahead of a fiscal update scheduled for March 26.
The Cabinet Office confirmed that nearly all of the 20,000 "Government Procurement Cards" will be frozen to curb unnecessary expenditures. Spending on these cards has surged in recent years, climbing from £155 million in 2020-21 to over £675 million ($876.83 million) in 2024-25.
Cabinet Office Minister Pat McFadden defended the decision, stating, “It’s unacceptable for hundreds of millions of pounds to be spent on government credit cards without proper scrutiny. Only officials with an essential need should retain them.”
Exceptions will be made for a select few, such as diplomats operating in crisis zones. The remaining cards will either be reassigned to individuals who can justify their use or permanently canceled by the end of the month. The government aims to cut the total number of active cards by at least 50%.
The crackdown on government spending mirrors similar cost-cutting efforts in the U.S., where President Donald Trump’s administration is implementing more severe measures. Tech entrepreneur Elon Musk, leading the Department of Government Efficiency (DOGE), is reportedly overseeing drastic budget reductions, including mass layoffs. Photo by Yuri Samoilov, Wikimedia commons.