The boss of Virgin Media Business has forecast more public sector organisations will join forces in a bid to cut costs over the coming years.

Mark Heraghty, managing director of the business broadband provider, noted three London boroughs - Westminster, Kensington & Chelsea, and Hammersmith & Fulham - are hoping to save almost £100 million by sharing services.

With local authorities set to receive seven per cent less funding year-on-year between now and 2014, he claimed moves of this nature are set to become more commonplace.

Mr Heraghty welcomed the money-saving strategy, remarking: "The joint procurement and sharing of services can be a really effective way for public sector organisations to cut costs, whilst continuing to deliver excellent frontline services."

His comments come in the same week Virgin Media Business announced it had been approved to sell broadband and other telecommunications services to all education establishments in the UK.

The company was awarded the rights by JANET, the UK's education and research network. 

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