Cabinet Office minister Francis Maude met with chief executives of the 19 biggest suppliers to the government this week to discuss what they could do to help cut the cost of the services they provide, his office said.
The Minister is planning to renegotiate key government contracts as part of its efforts to tackle a record budget deficit running at 11 percent of national output. It has already committed to making 6.2 billion pounds of savings from government spending in the 2010-2011 financial year.
"I am laying down the challenge to major government suppliers to ask them what they can do to take costs out of contracts," said Mr Maude, joint head of the government's efficiency board. "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. We will look to put into effect immediate savings and also create plans to further reduce costs in the medium to long term."
Chief executives who met with Maude on Thursday included those of computer manufacturers Hewlett Packard and IBM, telecoms providers British Telecom and Vodafone, and consultancy firm Accenture.
Gareth, APA.
The Minister is planning to renegotiate key government contracts as part of its efforts to tackle a record budget deficit running at 11 percent of national output. It has already committed to making 6.2 billion pounds of savings from government spending in the 2010-2011 financial year.
"I am laying down the challenge to major government suppliers to ask them what they can do to take costs out of contracts," said Mr Maude, joint head of the government's efficiency board. "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. We will look to put into effect immediate savings and also create plans to further reduce costs in the medium to long term."
Chief executives who met with Maude on Thursday included those of computer manufacturers Hewlett Packard and IBM, telecoms providers British Telecom and Vodafone, and consultancy firm Accenture.
Gareth, APA.
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