THE National Health Service has slashed the number of leasing suppliers providing vehicles for its 33,000-strong fleet. A new three-year contract cuts suppliers from 14 to four - three of which are tied to car manufacturers.

Ford Credit, Renault Financial Services and Vauxhall Master Hire will supply their own cars, while public sector contract hire specialist Automotive Leasing will provide other marques. The first centrally negotiated contract saved the NHS £3 million and the new deal should increase savings. An NHS supplies spokeswoman said as well as lower lease rates, the contract included centrally agreed prices, flexible payments and dedicated helplines.

Automotive Leasing, which has supplied vehicles to the NHS for eight years, is expected to provide a significant proportion of the vehicles. Commercial director Nick Salkeld said Automotive had supplied around a fifth of the 11,000 vehicles replaced annually and also acted as a benchmark for service and quality levels.