The internal investigation into alleged fraud by staff within Newcastle City Council's transport department has been completed, with the authority stating that issues arising from it have been addressed.
Investigation Details
The Local Democracy Reporting Service revealed last year that the council had launched a probe into possible fraudulent activity in its transport division. Concerns over financial irregularities at the Civic Centre were also passed to Northumbria Police in summer 2025. It is understood the issue related to the claiming of allowances and overtime within one section of the transport team.
A council spokesperson said: “The internal investigation has been completed and issues arising from it have been addressed. Given, however, that certain internal processes are ongoing, we are unable to comment further at this time.”
Action Plan for Highways Service
Last December, the council published an action plan aimed at raising standards within its highways service due to what it called “serious concerns”. Those measures included pledges to strengthen the management of overtime working with “tighter” controls, regular performance monitoring and transparent reporting to leadership teams, and the setting of “realistic” forecasts.
At the time, a council report said there was a “need for stronger governance, better financial discipline and clearer accountability within the highway service”. Councillors had been told in July 2025 that the alleged fraud had “absolutely stopped” and that there was no evidence of similar concerns elsewhere at the Civic Centre.
Police Involvement
Northumbria Police had said previously that it recommended to the city council that it conclude its internal processes surrounding the alleged fraud, after which the force would then have “an opportunity for further review if required”. It is understood that the police have not received further communication from the council following the conclusion of the local authority’s own investigation.
