On 17 March 2025, the UK government announced plans to cancel thousands of taxpayer-funded credit cards to significantly reduce “wasteful” spending.

The announcement follows news that spending on these cards has quadrupled in just four years, from £155 million in 2020/21 to more than £675 million last year.

With concerns growing about inappropriate expenses, the government is introducing strict new controls to prevent future misuse.

Key challenges in government spending

The government’s action on credit card waste highlights three critical issues common among businesses that rely on traditional spending methods.

Lack of visibility and oversight
Many purchases happened without scrutiny, enabling wasteful and inappropriate spending.
Inefficient manual processes
Identifying misuse or overspending was slow and cumbersome without automated controls or real-time monitoring.
Excessive risk
Unauthorised purchases occurred without adequate accountability or approval processes.

These challenges aren’t unique to the public sector – they reflect reliance on outdated spending methods and archaic systems.

Why traditional spending methods fail

Traditional corporate or credit cards often lack adequate spend controls. Without real-time tracking or defined budgets, spending can spiral unchecked. Manual reconciliations become overwhelming, increasing the risk of misuse, compliance breaches and fraud.

As the recent government announcement shows, uncontrolled spending can rapidly escalate. When that happens, the only solution available is a sudden, restrictive clampdown – like cancelling thousands of company cards – which can disrupt day-to-day operations and hamper productivity.

Smarter spending controls with Soldo

Soldo creates an environment where responsible and compliant spending becomes easy and automatic.

Reduced risk of overspending and fraud: Pre-set limits and budgets prevent misuse before it happens.
Improved productivity: Automation reduces admin by up to 80% (Forrester TEI report), freeing teams from manual reconciliation tasks.
Better financial decision-making: Real-time visibility provides accurate, timely insights, enabling proactive budgeting and forecasting.

Carlo Gualandri, CEO & Founder of Soldo, said, “Regular prepaid cards are often too slow and cumbersome to be effective, especially given the current economic situation in the UK. Soldo’s infrastructure is agile enough to be rapidly adapted to the needs of local authorities.”

These benefits ensure that money reaches those who need it quickly, transparently and securely, which is critical for local authorities and public entities.

The case for smarter spend management

The government’s recent clampdown is a wake-up call.

Reactive measures, like cancelling thousands of credit cards, temporarily ease symptoms but fail to address the root cause: inadequate spend controls and outdated processes.

Soldo paves the way for controlled, efficient and transparent spending. It empowers businesses to spend responsibly without hindering growth or operational effectiveness.