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The Gap Partnership

Government to hold business negotiations

Coalition wants firms to charge less for services

09 July 2010

Business negotiations are set to take place between the coalition government and top UK companies.

Nineteen chief-executives were hauled before Cabinet Office minister Francis Maude yesterday (July 8th) to discuss the cost of services they provide to the government.

Bosses from major British firms such as Serco, BT and Logica were asked to help cut the deficit by charging less.

The meeting will be followed by a tough round of procurement negotiations, which will be headed by Mr Maude and Danny Alexander, the chief secretary to the Treasury.

Mr Maude said: "I am laying down the challenge to major government suppliers to ask them what they can do to take costs out of contracts.

"Some of this will come out of margins, but we will also invite ideas on how we can structure things differently to reduce complexity and cost."

It comes as part of a cost-cutting exercise to save £6.2 billion in government spending.

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