BMW will announce plans to build its next-generation electric Mini in Oxford after securing a Government funding package.

The German-headquartered manufacturer’s multi-million pound investment to transform its existing plant will secure 4,000 high-quality jobs, according to ministers.

Government sources declined to set out the level of taxpayer support being offered to BMW, but did not dispute the previously reported figure of £75m.

Rishi Sunak said the Government was securing jobs and growing the economy “by backing our car manufacturing industry”.

“BMW’s investment is another shining example of how the UK is the best place to build cars of the future,” the Prime Minister added.

The announcement is the latest boost for the British car industry, with figures last month suggesting production increased by almost a third last month compared to a year ago.

Read the latest updates below.