EU regulators are investigating whether the British government violated state aid rules in granting £10 million to Vauxhall Motors.

The European Commission is concerned the Government gave Vauxhall more money towards retooling its Ellesmere Port plant than EU rules allow.

Parent company General Motors, which is cutting jobs and shutting plants across Europe, is investing about £195 million in the Ellesmere Port plant to produce its new Vectra there.

Vauxhall currently builds Astras and V6 engines in Ellesmere Port.