BUSINESSES across the North-East could find themselves facing their own expenses crisis if they do not have the correct procedures in place, it was warned yesterday.

Michael Coates, managing director of Protostar Leadership Development, based in Houghton-le-Spring, Tyne and Wear, said organisations need to examine their own expenses policies, along with taking into account the other areas where staff may be tempted to stray.

And he warned that companies which fail to get their house in order may also find themselves in trouble if the Government decide to use an expenses crackdown as a way to boost revenue.

Mr Coates claims that many companies do not have the right guidelines in place and that this puts temptation in the way.

He said that calling the expenses “allowances” gave MPs the illusion that they were entitled to claim them, and a lack of guidelines added to an easy authorisation process had all helped create the current situation.

He said: “Apart from the ethics of this situation, organisations could be saving money simply by having a fair but strict expenses policy and process.

“And if that was not reason enough, the Inland Revenue state that expenses outside of their strict guidelines are a taxable benefit and could land the employee and the employer with a hefty bill.

“Ironically, the Government could help pay off the current national debt by using existing tax laws more diligently and company expenses, as they now know, are an easy source.”