G4S to face more competition declares Francis Maude

In a speech to analysts on Thursday, Cabinet Office minister Francis Maude has said that G4S and Serco will face increasing competition from domestic and international companies.

Francis, speaking this afternoon said:

There will be new entrants coming into that market, both international players but also new entities coming into existence and suppliers who currently don't supply central government

It's really important that there is a really vibrant, competitive marketplace and that's our primary concern.

The comments come in the wake of an investigation into G4S and Serco over government contracts. The Serious Fraud Office (SFO) has launched criminal investigation after Justice secretary Chris Grayling claimed that taxpayers money has been wasted though overcharging on electronic tagging contracts. The two companies are unable to receive further government work until they have been cleared by the SFO.

Francis Maude also announced today the half year savings that had been made in the Cabinet Office. In the six months to the end of September the department had saved £5.4bn, £2.3bn more than the previous year. The Cabinet Office's efficiency and reform group is hoping to deliver £20bn of savings by 2015.