Jeremy Stafford, CEO of Serco is to step down as head of Serco operations in UK and Europe.

The announcement comes after a criminal investigation was launched against Serco over allegations of fraud surrounding the delivery of tagging services to the Ministry of Justice.

Stafford will be replaced on a short-term basis by UK and Europe Chief Operating Officer Andrew White.

The resignation of the Serco CEO comes as the outsourcing giant seeks to repair its relationship with the government following the tagging fallout, with Serco banned from any future public sector contracts until the results of a Cabinet Office review are heard.