Serco back in favour after government MoU

12th Nov 2010 17:44

Serco, the support services group that recently fell out with the coalition after demanding a 2.5% rebate from suppliers to help cover the cost of spending cuts, seems to be back in favour with the government.The company, which operates prisons, transport infrastructure such as London's Docklands Light Railway and other services, has signed a 'Memorandum of Understanding (MoU) with the government to deliver savings on a number of contracts.'Serco said the savings will be made through 'scope changes and cost efficiencies' and won't be material to its financial expectations.'I am very pleased that we have signed our MoU with the UK Government and we look forward to continuing to support our customer in the delivery of essential public services,' chief executive Christopher Hyman said.Earlier this month, pressure from ministers forced Serco to scrap its demand that suppliers pay it a 2.5% rebate to help cover the cost of coalition spending cuts.