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The shadow home secretary has warned companies seeking to work on identity cards that the Conservatives intend to scrap the scheme.
Chris Grayling, who has written to the firms involved, also told the BBC that he would be "delighted" if his actions slowed down progress on introducing ID cards.
He also explained that he had chosen to write to contractors because he wanted them to be "cautious".
"I want them to recognise that if they invest vast amounts of money preparing for this business, that may not happen," he stated.
"If more contracts are signed, there is a danger that the government will build so-called poison pills into the contracts that will simply make it more difficult for a future government to scrap the scheme.
"My message to contractors is, do not be part of that."
Grayling warned that in recent months the Conservatives had received "a number of signals" from the Home Office suggesting that "quite big penalty costs" were being built into the contracts for ID cards which have already been signed.
"There will be a substantial bill to the taxpayer were we to scrap the scheme," he said.
"I would be delighted if this slowed down progress on the ID card project because I think it is the wrong thing to do."
But he failed to clarify whether the Conservatives would renege on any contracts already in place, stating: "I think we will have to look at the details of the contracts."
Dods Parliamentary Communications Ltd