Justice Sec: Prison running costs 'too high'

The Justice Secretary Chris Grayling has explained a decision to move a prison security contract to the public sector:

The cost of running our prisons is too high and must be reduced.

That is why I have decided to take a new approach to how we compete prison services and reduce unit costs across the prison estate.

This is a challenge the public sector must rise to. The approach I am announcing today does not rule out further prison-by-prison competitions in the future.

– Chris Grayling MP

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G4S loses prison contact

The firm at the centre of the Olympics security shambles has lost its contract to run a jail and failed to win any further prison contracts it was bidding for, the Ministry of Justice has said.