Good reasons. I'd add recessions result in unemployment which is bad for the unemployed as well as the state rich relies on tax revenues. The state, however, can attempt to avoid these things (it's argued) by spending money (even if it requires borrowing) on things which encourage employment and will result in taxpayers. Theses taxes will eventually go back to paying off the extra money spent by the state.
So having passports made here - even if more expensive - provides more benefits for those who are paying for those passports (taxpayers in Britain) in the long run. In theory.