The coalition government is to meet its top suppliers to discuss about plans to cut the cost of their contract.

The meeting is to be held by the Office of Government Commerce (OGC). This talk will be the latest attempt to try to cut the gap between spending and income of the country by the coalition government.

The companies supply about 80 billion euros public service market of the UK.

A report unveiled in May suggests that 3 billion euros should be cut from the service contracts. These firms include the service firm Capita, which is responsible for the supply of local authorities and other software suppliers like Serco which is responsible for London Dockland Light Railway, some of the prisons and Ofsted inspections.

Both the OGC and the Serco are agreed to the fact that the figure of 3v billion euros is not correct now as things have moved on.

There are various problems in the negotiation of the supplier deal as most of the contracts with the government are long term to save money and the firms utilizes the money with the long term income stream.