Nearly 200 highly skilled engineering and manufacturing jobs could be created in the Midlands thanks to a £16.6 million investment boost the Chancellor announced this week.

The Chancellor, George Osbourne, confirmed that a research consortium, led by Jaguar Land Rover, would receive a £16.6 million grant to develop a more efficient transmission system for potential use in future models of their cars.

This crucial funding will create an initial 60 roles in research and development, and if successful could lead to the creation of a further 130 manufacturing and engineering roles. The new funding will also ensure the security of a further 150 roles.

Chancellor of the Exchequer George Osborne said: “I’m determined to build on the success of Britain’s Engine for Growth in the Midlands, and today’s announcement is a crucial step in our plan.

“In the Spending Review I set out how we’re making significant investments in the Midlands, across transport, energy and culture. This grant is a further example of how this Government is backing businesses in the Midlands to grow and create jobs and support working people at every stage of their lives.”

Dr Wolfgang Epple, Director of Research and Technology, Jaguar Land Rover, said: “The collaborative research programmes we lead bring together some of the best engineering minds in the UK and allow us to multiply the effect of our investment and nurture UK-based technology investment. This approach is helping to develop the skills and technologies that will make the UK even more competitive.”

The £16.6 million government grant is being awarded through the Advanced Propulsion Centre (APC) and is matched by funding from the automotive industry.

The APC is a 10-year £1 billion partnership between government and the automotive industry to bring innovators and producers of low carbon propulsion systems together. This will help transform Britain into a world leader for low carbon development and production.