Ministers have announced measures to boost British manufacturing with a £22 million grant to accelerate new house building technology and support growth in the supply chains.

The grant, part of a £104 million project led by construction and engineering firm Laing O’Rourke, will promote new pre-assembly techniques in house building.

Producing homes off-site will help increase productivity and reduce costs. The project will also deliver training in the latest digital engineering and installation skills.

Visiting a Laing O’Rourke construction site in London’s Elephant and Castle, Business Secretary Vince Cable said: “To meet urgent demand for new affordable homes, the construction industry must embrace new technologies and techniques – and our support will help them do this more quickly.

“This reflects the long-term commitment of our industrial strategy to modernising British manufacturing.

“Working in partnership with industry, targeted investment from government is helping firms exploit new technologies, raise skills levels and improve productivity.”

Business Minister Matthew Hancock said: “Backing Britain’s manufacturers has been front and centre of our long-term economic plan.

“We know that our manufacturers can only really thrive when their UK suppliers are in the best shape and retain market share in long-established sectors, like automotive and aerospace, as well as strengthening supply chains in emerging sectors like nuclear, shale gas and advanced materials.”