Council credit card use attacked

Eric PicklesEric Pickles said councils would have to details of their expenditure in future
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Council staff have used taxpayer-funded credit cards to pay for top hotels and first-class flights, a newspaper says.

The Daily Telegraph said documents showed cards had been used to spend millions of pounds on hospitality, travel, iPads and even llamas.

Communities Secretary Eric Pickles told it: “Some councils have been enjoying the high life paid for by you and me.”

But local government groups said proper use of credit cards was “entirely appropriate” and could cut red tape.

Local Government Association (LGA) chairman Baroness Margaret Eaton said: “The use of credit cards for legitimate purposes is entirely appropriate and transparent.

“It helps reduce red tape by removing the need to invoice businesses and helps the cash-flow of regular suppliers who receive more prompt payment.

“It is outrageous that the – often handsomely rewarded – people on the top floor at County Hall are lavishing vast sums on travel, hotels, home cinema systems and even £1,000 on ‘pure silk ties’”

Jeremy Rowe Cornwall Council Lib Dem opposition leader

“The £100m spent on council credit cards in the last three years represents less than 0.03% of the £350bn local authority budget over that time.

“Councils are the most transparent part of the public sector, publishing details of spending in excess of £500. We would like to see that matched in all central government departments which, with one exception, currently only publish spending in excess of £25,000.”

The Daily Telegraph said it had unearthed the information after making a number of requests under the Freedom of Information Act.

It comes as councils are trying to cut their spending by 28% over the next four years.

In addition to travel and hospitality, the paper said, some councils had even bought luxury gifts, including Tiffany jewellery, Gucci bags and silk ties.

And it said Horsham Council in West Sussex had spent £1,150 on two llamas to graze on communal land.

The Telegraph said Cornwall Council’s total credit card bill of £8.97m was the largest of any of the councils for which it had obtained details, and included £1,145,160 spent on hotels since 2008.

Cornwall Council officers had made trips to Goa in India, Bangkok in Thailand and Kyoto in Japan.

Cornwall’s Liberal Democrat opposition leader Jeremy Rowe told the BBC: “At a time when Cornwall’s lowest paid workers are having their pay frozen it is outrageous that the – often handsomely rewarded – people on the top floor at County Hall are lavishing vast sums on travel, hotels, home cinema systems and even £1,000 on ‘pure silk ties’.

“It really is time the Tories, instead of merely posturing about keeping council spending under control, decided to get a grip on this astounding level of expenses on the taxpayers’ credit card.”

Jim Currie, Cornwall Council’s cabinet member with responsibility for finance, said he could not comment in detail but said: “We have the squeeze on big time and it’s right across the board.

“Spending is under control. I am hoping to create a reputation for very sound finances. We are ahead of the game.”

Mr Pickles said: “Now that we are forcing councils to release details of their expenditure, the culture of wild overspends and excess which became the norm under Labour, will hopefully become a thing of the past.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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