Ministers are planning to render useless the GPS system, known as Galileo, after Brussels bureaucrats said the UK would not be allowed to use the encrypted navigation data.

A total of 15 percent of the £2.3billion project was paid for by the UK and senior politicians are now considering shutting down the project if they are not allowed to make use of their investment.

A Whitehall source said: “Galileo relies on a huge amount of British know how, as well as our territories all over the world.

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