Thousands of government credit cards will be cancelled this week, under plans to cut spending and ensure every pound of taxpayer money is targeted at delivering for the public.

The Cabinet Office will instruct departments and their agencies to freeze almost all of the around 20,000 Government Procurement Cards in circulation.

They say thousands of credit cards, across all departments, will be cancelled, under plans to cut spending and ensure budgets are more targeted at delivering for the public.

Cardholders will then be forced to reapply in a tougher new application process, with departments told to approve the minimum number of new cards possible.

It is expected the number of cards will be reduced by at least 50%.

Only a minority of cards, used for specific operational purposes such as by diplomatic staff working in unstable environments, will be exempt from the mass freeze.

Chancellor of the Duchy of Lancaster Pat McFadden, who ordered a review of the cards, said: “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 follows the Prime Minister’s intervention last week where he said the Government must go “further and faster” to reshape the state and make it work for working people.

Over the past four years the amount spent on government credit cards has more than quadrupled, with spending in the last financial year reaching over £600 million in central departments and core agencies.

Tighter new spending controls are also set to be introduced, with the maximum spend for hospitality slashed from £2,500 to £500, and any spend over £500 requiring Director General approval.

Civil servants will also be banned from using cards where there is a cheaper alternative such as procuring items at scale across government, like booking travel, training, or office supplies.

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