THE Bank of England has agreed a new 10 year contract with De La Rue to print its banknotes.

Last month, the Bank announced that De La Rue, which employs 600 staff at its plant in Gateshead, had been identified as the preferred bidder for the banknote printing contract. The Bank has subsequently completed assurance activity on De La Rue’s bid and finalised the contract.

Printing under the new contract will commence in April 2015 from a De La Rue factory in Debden, Essex.

The Bank first outsourced its banknote printing in 2003, which De La Rue won following a tender process.

The extended contract is said to be worth about £1bn.

The news comes almost two years since the Bank launched a formal public procurement process for the printing of its banknotes.