UK faces bill to cancel Eurofighter order

Cancellation of the UK’s latest order of Eurofighter Typhoon jets could cost the country more than £2bn in penalties and would break contingent deals on maintenance and upgrades, leaving Britain facing yet higher bills, according to senior Whitehall sources.

The warning about paying “money for nothing” comes as ministers battle over the future of the programme, which the Treasury wants to abandon on grounds of cost.

Gordon Brown, prime minister, is coming under increasing pressure from the leaders of Germany, Italy and Spain – the UK’s partners on the programme – to stop holding up the aircraft’s third production run by making an overdue €1.6bn (£1.45bn) payment.

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