FIRMS producing zero-emission vehicles are set to benefit from a £65 million injection of government funding in a move ministers say will support thousands of jobs.

The funding, to be matched by investment from the automotive industry, includes £50m for car firms and research partners to help produce electric vehicles at greater scale.

The overall £130m package is part of the government’s £4 billion Drive35 programme, intended to speed up the electrification of the car industry.

Officials at the Department for Business, Innovation, Science and Trade said the funding would support 1,800 jobs directly as well as thousands more in the supply chain.

Industry Minister Blair McDougall said: “Britain invented the modern motor industry and we’re determined to ensure the next generation of vehicles are designed and built here too.

“This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.”

The government has said it intends to phase out the sale of new petrol and diesel cars by 2030 as part of efforts to cut emissions and tackle climate change.