Notes that contain traces of animal fat will continue to be produced by the Bank of England, despite criticism from activists.
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%, ultimately derived from animal products".
The Bank made the decision despite 88% of respondents being against the use of animal-derived additives.
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.
In a statement, the Bank 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."