Snubbed British firm demands answers from Theresa May as Cabinet minister hints blue passport contract not a done deal

The boss of the British firm which is about to lose out on a contract to make the new iconic blue passport has demanded answers from Theresa May, as a Cabinet minister said the deal has not yet been signed.

Martin Sutherland, the boss of De La Rue, confirmed a Franco-Dutch company is expected to win the £490million deal but called for the Prime Minister to visit its factory in Gateshead and explain to "proud" staff why the new document will be made in France, not the UK. 

It came as Matt Hancock, the Culture Secretary, told the BBC that the procurement process "is not fully complete", suggesting it could yet be reversed.

The news that a European company could make the new passport has infuriated Brexiteers who wanted it to be produced in Britain as a sign of the UK's newfound independence after leaving the European Union. 

Mr Sutherland spoke of his anger at the decision and vowed to challenge it as he asked Theresa May for answers. 

Speaking to BBC Radio 4's Today programme, he said: "I find that a disappointing and surprising decision.

"We've heard over the last few weeks and months ministers more than happy to come on [TV and radio] and talk about the blue passport and how it's an con of British identity but now this icon of British identity is going to be manufactured in France."

Mr Sutherland the company is not allowed to compete for passport contracts in France - thought to be because of national security protections - making it unfair for companies from the continent to do so in the UK. 

He added: "The passports are manufactured in Gateshead, we have a very skilled and proud workforce in Gateshead.

"I'm going to have to look at them in the whites of their eyes and explain why the British Government thinks it's a good idea to buy French passports rather than British passports.

"I would like to invite Theresa May or Amber Rudd to come to my factory and explain to my dedicated workforce why they think this is a sensible decision to manufacture offshore a British icon."

Mr Sutherland said he will appeal the decision and warned it would be bad for the British economy for the deal to go elsewhere. 

It came as Mr Hancock, a Cabinet Minister, was pressed on whether the contract should be handed to a British firm. 

He said: "As I understand it this procurement is not fully complete". 

But he added that there are strict rules that govern procurement processes. 

The Home Office has confirmed the process is ongoing so in theory it could be reversed. 

In a statement a spokesman said: "We are running a fair and open competition to ensure that the new contract delivers a high quality and secure product and offers the best value for money for customers.

"All passports will continue to be personalised with the holder’s details in the United Kingdom, meaning that no personal data will leave the UK.

“We do not require passports to be manufactured from the UK. A proportion of blank passport books are currently manufactured overseas, and there are no security or operational reasons why this would not continue.”