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Serco has "unqualified apologies" to request a refund in cash from suppliers to help respond to the request of the Government for savings on projects in the public sector this year.

Sunday Telegraph revealed that Serco wrote in 200 of its main suppliers requesting a 2 5pc refund cash on all work performed in the group so far this year.

Society, running prisons, nuclear facilities, schools, and the ports for the Government cited the Cabinet Office to save 800 m drive ￡ this year contracts from the central Government as the reason for its request.

However, in a statement issued today that Serco said that he had "retracted" application after its plans to improve its procurement process had "evolved".

He said: "We [have] decided not seek or accept any contributions from our suppliers, who had recently received letters requesting discounts."

As a company that values our relationship with all our partners supply chain, large and small, we deeply regret this action and apologize unreservedly to them to concern a causé.Nous are now this contact to our partners in the supply chain and retract the letters.

The letters written by the Chief Financial Officer Andrew Jenner and sent to top 200 providers in the last month, Serco set out how the Government for its suppliers efficiency gains drive had influenced his decision.

He said: "Chris Hyman and I've given our personal commitment to the Cabinet Office that Serco and its supply chain will provide our total support" to government savings plan.

Letter continued: "as the Government, we are trying to determine who our real partners are that we can count sur.Votre response will no doubt be indicate your commitment to our partnership but will also be something that I will consider seriously in our working relationship as Serco continues to grow."

When contacted by the Sunday Telegraph, the Cabinet Office said Francis Maude, Minister leading player of the effectiveness of the Government had ordered Serco to account for its actions.

"We clearly disagree with and are highly critical of the approach adopted by Serco, said a spokesman for the Cabinet Office."Francis Maude will call to explain themselves.?

Other key with the importance of public sector contracts support companies reported that they have no plan to request payment from suppliers.

Living, G4s, Carillion Compass Group were all declared and that they have no plan to make requests in similar species.

Serco, price share fell almost 7pc 574% in trade in the beginning, said that his call for a refund in cash to its base of 15 500 offers 193 and that he "strongly supports and values" its supply chain.

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