G4S will be knocked back from outsourcing contracts for Hertfordshire, Bedfordshire and Cambridgeshire Police forces next week. The preference now is to merge IT, HR, payroll and legal departments and take smaller savings. G4S is now seen as an unacceptable risk.
Faced with a list of last minute problems, ministers and organisers insist the Olympic security situation is under control.
Theresa May was tonight accused of giving MPs a "selective account" about when she knew G4S were having problems supplying Olympic staff.
MOD confirm picture of UK Olympics troops sleeping on chairs as they cover the G4S shortfall in Olympic security is genuine