Tube chiefs’ expenses rules relaxed days after fares rise

12 April 2012

Tube bosses have been given the green light to start spending on hotels, flowers and magazines after financial restrictions imposed last year were eased.

There was fury from union leaders who said transport chiefs were set to resume a "spending spree on luxuries and hospitality".

Permission to start spending again came from Andrew Pollins, London Underground's director of finance, in an internal memo dated January 5 — three days after Tube fares increased by an average of almost seven per cent. It states that since last July's restrictions were introduced, more than £12 million has been saved.

LU executives now no longer need permission to spend on refreshments and lunches, as well as items including headed paper and greeting cards.

A Transport for London spokeswoman said: "While we continue to ensure strict controls are in place, some authorisation has now been delegated to senior London Underground directors and managers."

RMT leader Bob Crow warned it would "strengthen the resolve" of unions to fight job cuts.

A spokesman for Transport for London said staff must still get permission for expenses from London Underground directors. He said the "only difference" is that managing director Mike Brown will no longer sign off all expenses

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