9.57am GMT Chris Grayling, the justice secretary, has stripped G4S and Serco of responsibility for electronically tagging criminals.
Britain has little leeway in deciding whether to introduce these rules, which, for instance, include those on electronically tagging sheep.
Analysts fear the firm is in a "downward spiral", since the scandal broke over billing the UK government for electronically tagging prisoners who were dead.
G4S and Serco have been embroiled in several scandals over their handling of government contracts and were stripped of responsibilities for electronically tagging criminals last month.
Private security giants G4S and Serco have been stripped of all responsibilities for electronically tagging criminals in the wake of allegations that the firms overcharged taxpayers.
The suggestion is that they charged the Ministry of Justice for electronically tagging people who had left the country, people whom they weren't tagging, and in some cases, dead people.
