The Government ended its £750m border security contract with a consortium led by Raytheon yesterday, saying it had no confidence in the US company.
The contract was awarded by the previous Labour administration to a group of companies including Serco, BAE, Qinetiq and Accenture in November 2007. They were asked to develop and implement a scheme to collect and check passenger details against police, security and immigration watch lists.
The Home Office said Raytheon, which provided technology to carry out security checks on travellers, had been in breach of the e-Borders contract since July 2009. Although the cancellation comes amid austerity measures, the Government, which has spent £188m on the contract to date, said it would seek alternative providers for the project.