The European Commission is to investigate the proposed £10m Government aid package for Vauxhall.

The proposed investment would go towards Vauxhall's costs for retooling its Ellesmere Port plant, which is moving from a single model production to accommodate the Astra and Vectra models.

The EU said today that it is concerned that the amount of aid is too high in proportion to the total cost of the investment.

Vauxhall was confident the grant would be given the go ahead, but expressed concern over any delays that could occur due to the investigation.