LOTUS has been handed a £10.4 million government grant that will help the sports car manufacturer create more than 300 new jobs.

The money comes from the Regional Growth Fund and will be used for research and development of products, along with staff training.

In addition Lotus is expected to create 313 new full time jobs to support production over the coming years.

Business Secretary Vince Cable visited the company's Norfolk headquarters to tour the engineering and factory facilities - and formally announced the grant to Lotus management.

The grant is a further boost for Lotus, following a £100 million investment by its owners DRB-HICOM which has allowed the company to boost its engineering, efficiency and quality.

And the Malaysian-owned outfit is also recruiting for the 130 jobs announced during the summer.

Lotus chief Aslam Farikullah said: "This grant is part of a wider strategy for Lotus created to ensure we thrive and grow.

"We have very exciting plans for our sports cars and it's a very positive move for Lotus that we're in a position to create new jobs and to significantly contribute to Britain's automotive industry."

Vince Cable added: "Lotus is an iconic British car maker, with some of the most innovative engineers in the business. The car industry is one of Britain's great success stories, employing over 130,000 people and helping to build a stronger economy by contributing £11 billion a year.

"The Government's industrial strategy is working and giving business the confidence to invest, creating more high skilled, long term jobs in the UK."