Britain to rival EU's Galileo space project by sending own satellite navigation system into space

Britain is considering launching a rival satellite navigation system to the EU's Galileo project after being shut out of key elements of the programme, it has been reported.

The move comes amid a deepening row with Brussels over whether Britain can continue to be trusted with Europe's most sensitive security information in the wake of the Brexit vote.

Business Secretary Greg Clark was said to be taking legal advice on whether the Government can recoup the the 1.4 billion euro (£1.2 billion) it has invested in the programme since 2003 after being blocked from the most sensitive elements.

Mr Clark warned the European Commission's actions could threaten continuing "mutually beneficial" defence and security co-operation with Britain after Brexit.

He also made clear the Government would continue to ensure the UK was able to take advantage of the new opportunities offered by the "commercial space age", the FT reported.

"We have made it clear we do not accept the commission's position on Galileo, which could seriously damage mutually beneficial collaboration on security and defence matters," he said.

"Given the UK's integral role in the programme, any such exclusion could cause years of delays and a cost increase stretching into the billions.

"We will continue to work with the UK space sector on this issue and through our modern industrial strategy will ensure the UK can realise the opportunities of the commercial space age."

The dispute between London and Brussels is being seen as one of the first practical consequences of the 2016 Brexit referendum vote.

As part of the UK's fightback, the Government is said to be preparing to block the procurement of the next batch of Galileo satellites - intended to rival the United States system - at a meeting of the European Space Agency council in Berlin.