UK government to pay £1.3bn to help fund Universal Studios theme park in Bedfordshire

Chancellor hails deal saying it will create tens of thousands of jobs in the construction, hospitality, creative and technology sectors

British taxpayers will provide £1.3bn in funding to help Hollywood studio giant Universal build its first theme park in Europe .

Comcast, the US media company that owns NBC Universal and Sky, had been considering a number of countries in which to build its first European theme park.

However, a deal to build the attraction on the site of former Kempston Hardwick brickworks near Bedford was agreed after a significant offer of government financial support.

A package initially revealed last June included almost £500m of public investment in rail and road infrastructure, including a station development at Wixams, while talks over the scale of the overall government assistance continued.

On Wednesday, the government revealed a £1.3bn total package of support, which includes £400m through the regional growth fund, and a £438m grant from the Department for Culture, Media and Sport to “invest in new community infrastructure to maximise the benefits of the development and support growth across the region”.

The Department for Transport is spending an estimated £474m on “strategic road and rail” projects in the region.

As part of the deal, which on Wednesday involved the chancellor, Rachel Reeves, visiting the proposed site , Comcast has said it will invest more than £5bn in the new entertainment complex over the five-year construction period.