Neighbours print their own passports...but not UK

Government, said EU rules obliged the UK to put the contract out to open tender. He insisted yesterday: “This is a good contract.”

However, around the rest of Europe governments have sought exemptions on the grounds of national security.

Germany, Italy, Ireland and Spain are among countries which have awarded their passport contracts to home companies.

The Netherlands, which will benefit from Gemalto’s success, also manufacturers its passports.

Yesterday, MPs and members of the House of Lords demanded the Government rethink the controversial decision.

The bid by Gemalto is believed to cost £50million less than De La Rue’s and will save taxpayers £120million over the lifetime of the contract.

Tory MP Andrew Bridgen said the UK should have followed other countries in treating the contract as a security issue.

It is believed personal details like name and photograph will be embedded in the UK. This will create up to 70 jobs in Hampshire and Greater Manchester, but this process will also be run by Gemalto.

Labour peer Lord Foulkes of Cumnock said: “On both sides of this House, there is a desire that this ought to be reviewed, in the name not just of security, but of national pride.”

Tory former Cabinet minister Lord Forsyth of Drumlean added it was “extraordinary” for a Conservative government to back a state company over a private firm, which needs to make a profit and may now have to shed jobs in the Brexit-backing Northeast.

The new passports will have Britain’s traditional dark blue and gold cover, instead of burgundy which was adopted in 1988 as an EU member. FrancoDutch firm Gemalto is the preferred bidder to make the traditional British blue passport when the nation gives up the burgundy EU version after Brexit