The Government has already "exceeded" its £800m savings target for this year by squeezing its main suppliers for cash rebates, Francis Maude, the Cabinet Minister has said.

With public sector contractors Serco and Capita due to update investors this week on trading and negotiations with 34 "second-tier" government suppliers taking place this month, the eventual savings could be much higher.

Mr Maude said the £800m figure had been a best guess when he began the cost-cutting process in July. "We did not actually know exactly how much we would get out of renegotiating contracts. We had an ambition and we've slightly exceeded it," he told The Sunday Telegraph in an interview.

He was speaking before Serco announced on Friday that it had agreed central government contract "scope changes and cost efficiencies". The company will update investors today when it posts a trading statement but has already said the changes were "not material" to its earnings.

Nineteen suppliers were hauled in to the Cabinet Office in July and since then G4S, Cable & Wireless Worldwide, Logica, Cap Gemini, HP, Oracle, BT, Accenture, Siemens IT Solutions and Services, Steria and Atos Origin have publicly said they have agreed deals.

Source: http://www.telegraph.co.uk/finance/newsbysector/supportservices/8132753/Francis-Maude-Government-has-exceeded-800m-savings-target-for-suppliers.html