MPs have joined criticism of the decision to build the replacements for Northern Rail’s hated Pacer trains outside of the UK.

Arriva, which will begin operating the new franchise from April, awarded Spanish rolling stock manufacturer CAF the contract to build 281 new train carriages.

The RMT rail union said it was a “kick in the teeth” for British based Bombardier, in Derby, which it said had been shortlisted for the multi-million pound contract.

The situation contrasts with the Government backing given to Hitachi to assemble new inter-city high speed trains for the East Coast Mainline in the UK at Newton Aycliffe, County Durham.

Arriva, whose headquarters are in Sunderland, said it had completed a comprehensive procurement process and the deal it had struck was best value.

But Redcar MP Anna Turley said: “The long overdue replacement of the Pacer trains, while welcome, should have been an opportunity to support British manufacturing and our skilled workforce.

“The Government should have ensured that in the franchising process British firms would benefit.

“Instead, as we have seen with the steel industry, they have turned their back on British jobs and industry yet again.”

And Middlesbrough South and East Cleveland MP Tom Blenkinsop said: “Understandably many people will be angry at the decision to build these trains in Spain when the money could be well used here to support British jobs and British manufacturing.

“Warm words from [David] Cameron about supporting steel workers ring hollow as each high profile and lucrative manufacturing announcement is made.”

RMT general secretary Mick Cash said: "This is yet another kick in the teeth for train building in the nation that gave the railways to the world.

"At a time when manufacturing jobs and the steel industry in Britain are under the cosh it is nothing short of scandalous that this contract has been sent overseas."

The first of the new Northern trains will be delivered by October 2018 with the deal being financed by the Eversholt Rail Group.

Chris Burchell, managing director of Arriva’s UK trains division, said: “We are delighted to partner with CAF and Eversholt Rail Group to meet the high specification and demanding timetable for delivery of the new rolling stock.

“I hope that today’s announcement once again makes clear our determination to deliver on our promises to passengers.”