UK will not abandon Galileo yet, says government

Spending ceiling will limit costs to £500m before 2013

Galileo will give a £14.2bn boost to the UK economy, says the Government

The UK will continue with its financial commitment to the Galileo project despite the lack of a proper cost-benefit analysis.

In November last year the Commons transport committee urged the government to reconsider committing further funding for the programme which has cost UK taxpayers £97m so far.

But the government says that a £14.2bn boost to the UK from extra jobs and company contracts for the work mean it will continue to support the scheme – though it will still retain the possibility of opting out later.

The project could still cost the UK taxpayer a further £1.5bn depending on the confirmation of certain final costs, the transport committee said in November.

But the government said it had agreed a spending ceiling with the European Commission that meant costs would not rise above £500m before 2013.