Government to hold business negotiations
Coalition wants firms to charge less for services
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.