The UK will continue with its financial commitment to the EU’s multibillion-pound satellite project despite the lack of a formal cost benefit analysis.

In November, MPs urged the government to reconsider committing further funding to the Galileo programme ­ which has already cost UK taxpayers £97m and could need another £1.5bn over its lifetime.

But UK support will continue because of an estimated £14.2bn boost to the economy from extra jobs and contracts created by the scheme, according to the government.

It has also agreed a spending ceiling so costs cannot rise above £500m before 2013.
The 30-satellite scheme will provide global positioning services for Europe.