Newcastle City Council has completed its internal investigation into alleged fraud involving staff in its transport division, more than a year after financial irregularities first came to light.
The investigation was launched after concerns were raised over suspected fraudulent activity linked to the claiming of overtime and allowances within one section of the transport team. The matter was also referred to Northumbria Police in summer 2025.
The council confirmed the internal investigation has now concluded and said issues identified during the inquiry had been addressed. However, the authority declined to provide further details, stating that some internal processes remain ongoing.
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.”
The case prompted wider scrutiny of the council’s highways service.
In December 2025, Newcastle City Council published an action plan aimed at improving governance, financial oversight and accountability within the department after identifying what it described as “serious concerns”.
The measures included tighter controls on overtime claims, regular performance monitoring, greater transparency in reporting to senior leadership and more realistic financial forecasting.
A council report at the time said there was a need for “stronger governance, better financial discipline and clearer accountability within the highway service”.
Councillors were previously told in July 2025 that the alleged fraud had been stopped and that there was no evidence of similar issues elsewhere within the Civic Centre.
Northumbria Police had previously said it advised the council to complete its own internal investigation before the force considered whether any further action was necessary.
It is understood the police have not received any further communication from the council since the internal investigation concluded.
