The Government has confirmed that Nissan will get its grant of £20.7 million to support plans for a £420 million investment to build a battery plant and electric car production in Sunderland.

The Government said the grant will help secure and create over 550 jobs.

The announcement follows confirmation from the Business Secretary Vince Cable that a loan guarantee of £360 million to Ford would also go ahead.

This grant will be used to support Ford's £1.5 billion investment in six projects for the development of lower carbon vehicle and engine technologies safeguarding 2,800 skilled workers, in Bridgend, Dagenham, Southampton and Dunton in Essex, would go ahead.

The announcemnts followed a Treasury review of all significant projects announced since January to check they were "affordable, value for money and that they fitted in with the priorities of the coalition Government".