A decision by the Home Office to terminate a contract for a new immigration computer system has cost the Government £224 million.
An arbitration court has ordered it to pay the US manufacturer Raytheon the compensation, including £50 million in damages.
Raytheon signed a nine-year deal with the Labour government in 2007 to provide the e-Borders IT system, which would record all passengers in and out of the country.
The Coalition Government cancelled the contract after just three years, claiming that it had failed to deliver the required results, but the tribunal found this was unlawful.
