Tube bosses have been criticised in a new London Assembly report for paying engineering firm Bombardier £80m despite it failing to deliver a key contract.

In June 2011 the firm was awarded a contract to replace and upgrade signalling systems on the the Circle, District, Hammersmith & City and Metropolitan lines for £354m.

However in December 2013 Transport for London said it had became clear Bombardier was not going to deliver and terminated the contract.

Today’s report by the Assembly’s Transport Committee says rather than sacking the firm and seeking compensation for taxpayers, TfL “paid Bombardier £80 million to end the signalling contract.”

Caroline Pidgeon, chair of the committee said: “How is it possible that Bombardier’s woeful failure to deliver was rewarded with a fat cheque?

“TfL must ensure no more ‘bad’ contracts are allowed to happen and put in place financial consequences for contractors that fail to deliver. Surely that’s just common sense.”