The FTSE listed business, which came under fire after promising and then not delivering enough security personnel to police the Olympics, has also been urged to forego its £57m management fee by the committee to show it is sorry for the mistake.
The Home Affairs Select Committee, which publishes its final report into the affair today, proposes that the government maintain a central register of high-risk companies who have failed in delivering public services to inform future procurement decisions.
G4S said it had a longstanding track record of delivering on government contracts.
“Everyone connected with the company is extremely disappointed that G4S was unable to deliver on its full commitments on this contract,” it said in a statement. “But this does not reflect the high standards G4S delivers continuously in its other work for the UK government every day.”