The UK and Germany have agreed to an Industrial Tech Corridor to help companies in both countries build partnerships that drive investment, create jobs and introduce cutting-edge technologies.

Communities in the UK are set to benefit from an increase in high-skilled jobs.

The prime minister visited Berlin on Thursday, where he met with Chancellor Friedrich Merz.

The initiative under the Kensington Treaty is backed by some of Germany’s leading companies including Allianz, Bosch, RWE and Siemens.

The corridor will connect  industry leaders, tech companies and innovators from both countries - unlocking new ways for them to work together and to harness the opportunities of AI and critical technologies.

The two countries will also share a pot of £17 million to accelerate joint research on Quantum. Quantum has the potential to add more than £200 billion and 100,000 jobs to the UK economy by 2045. Earlier this year, the UK committed to being the first country in the world to build large-scale Quantum computers by the early 2030s.

This funding will be used on projects in areas such as quantum computing and quantum in financial services.

Secretary of State for Business, Innovation, Science & Trade, Jonathan Reynolds, said: "Today’s agreements are great news for British tech, businesses, and workers. They mean more jobs, more investment, and more innovations that will change lives.

"We already work closely with Germany in key areas like AI and Quantum, and today lays a new foundation - combining the strengths of our businesses and innovators so people in both countries will benefit from for years to come."

Last month, the UK and Germany also launched a joint funding call worth £2.4 million to support innovative R&D projects, focusing on clean energy, life sciences and engineering biology.

Germany is the UK's second largest trading partner.