According to a report, up to £300million of taxpayers' money has been squandered on swine flu jabs that were never required.

Last year, Ministers commanded 90million doses of a vaccine at a price of £540million as fear over the sickness seized the country.

But as the 'pandemic' did not happen, it soon became evident that the order was far too extensive.

The Health Department tried to get out of the huge contract but the drug firm, GlaxoSmithKline, declined to backpedal.

Yesterday, the Government declared that it had signed a compromise deal that restricts the number of shots of Pandemrix at 34.8million, but, surprisingly, at twice the price that was first agreed.

It means that the Government will pay for two-thirds of the original deal but will receive only one-third of the doses.

The deal was condemned by the Tories and pressure groups, who said that it has proved that the Government had mishandled the seven-month epidemic.

Tory Health Spokesman said, "This is a careless waste of precious NHS money".

Meanwhile, Simon Jose of GlaxoSmithKline said, "'In line with these principles, we are pleased to have reached a settlement, which has been mutually agreed as representing fair value for the UK Government and for GSK".

Health Secretary, Andy Burnham insisted that 'significant savings' had been made.