Cabinet Office Minister calls key suppliers to meeting in bid to secure savings

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The government has summoned major suppliers such as Capita and Serco to a meeting this week to discuss making savings on the cost of their current contracts, the BBC has reported.

Cabinet Office Minister Francis Maude is to chair the meeting with the suppliers, who are key players in the UK’s £80bn public service market.

Capita supplies local authorities and other public sector bodies with software, including council tax collection. Serco is responsible for the likes of the London Docklands Light Railway and some prisons.

The BBC suggested that the government might struggle to secure significant reductions. “Most government contracts are long-term to save money so renegotiating deals may prove difficult,” it said.