Ministers have given under-fire Government contractor G4S the all-clear to compete for public sector contracts, following the scandal of the firm overcharging for prisoner tagging contracts.

A review undertaken by the Cabinet Office's oversight group and scrutinised by independent advisers Grant Thornton has approved G4S' corporate renewal plan.

The decision follows last month's announcement that G4S would repay the Ministry of Justice £108.9m for overcharging, a steep increase from its original offer to compensate the Government £24m.