GREEDY outsourcing behemoth Serco confirmed its total exit from scandal-hit clinical health contracts in a statement to investors yesterday.

The sprawling firm which has hoovered up billions in publicly funded contracts in nearly every sector signalled its retreat from front-line NHS care following a “further review of the costs” and “onerous” contract demands.

Its decision casts fresh doubt on Tory plans to parcel England’s entire health service up to private subcontractors.