Maude targets second-tier suppliers in drive to cut spending

The government is to start negotiations with second-tier providers after securing around £800m in savings through talks with its major IT and outsourcing suppliers, according to a report in the Sunday Times.

The paper said 19 companies – including Capita, Serco, BT and G4S – would sign agreements this week that would reduce the scope of some their work for the public sector.

The £800m savings will be a significant step towards Cabinet Office Minister Francis Maude’s target reduction of £6.2bn in public sector spending.

The Sunday Times predicted that the government would reduce the specifications of some of its supply deals, and seek to centralise some purchasing.

Maude said: “Through necessity, the process has been fast and sometimes tough, but as we near the end it’s clear there are going to be positive results for both sides.”