Banknotes featuring a Cumbrian firm's polymer containing animal fat are set to stay.

The Bank of England has made the announcement, following calls from activists to make changes.

Following a public consultation, the Bank said the new £20 note and future print runs of £5 and £10 notes -will continue to be made from polymer, "manufactured using trace amounts of chemicals, typically less than 0.05 per cent, ultimately derived from animal products" by Wigton-based Innovia Group.

The move is likely to enrage animal rights activists such as PETA and the National Council of Hindu Temples, which have expressed their outrage at the use of tallow in new bank notes.

The Cumbrian who led calls for changes is "disappointed" with the news and is now going to organise a protest at the Bank.

A Bank spokesman said: "After careful and serious consideration and extensive public consultation there will be no change to the composition of polymer used for future banknotes.

"This decision reflects multiple considerations including the concerns raised by the public, the availability of environmentally sustainable alternatives, positions of our central bank peers, value for money, as well as the widespread use of animal-derived additives in everyday products."

This is despite 88 per cent of respondents to its consultation being against the use of animal-derived additives being used.

It said the only viable alternative is palm oil but this raises questions about environmental sustainability and value for money.

The Bank's estimated extra cost of switching to palm oil is around £16.5m over the next 10 years, which would not represent "value for money for taxpayers".

The spokesman added: "The case for moving to polymer banknotes remains compelling.

"Polymer banknotes deliver significant benefits over paper, particularly when combined with state of the art security features which make the notes much harder to counterfeit.

"Polymer is also stronger than cotton-paper and so notes will last longer, remain in better condition and deliver environmental benefits.

"The Carbon Trust has certified that over their full life cycle, the carbon footprint of polymer £5 and £10 notes is lower than paper notes."

Fury among vegetarians and vegans erupted following confirmation by the Bank that the notes contained tallow in November.

About 140,000 people signed a petition against its use, with activists advocating for a more suitable alternative.

Earlier this year vegan Doug Maw, who was based in Keswick at, who organised the petition, met Bank officials to discuss the issue.

After hearing the latest news Mr Maw, who has now moved to West Sussex, said: "I am disappointed that they have chosen to ignore not only the people who signed the petition but also the 88 per cent who responded to their own consultation who said they did not want animal parts in their notes. I do not see what the point of the consultation was."

He added that he has organised a demonstration to take place outside the Bank's headquarters in London on September 14.

Mr Maw said: "I was just turning down £5 notes, now I am turning down all notes."

Innovia declined to comment.