Business secretary Lord Mandelson toured Luton's GM van plant this morning, telling workers the business was "important part of Britain's manufacturing future".

Negotiations for a takeover of GM Europe (GME) are currently taking place in Germany, and Lord Mandelson said the British government was prepared to give financial support to the new owner.

He said the help would come in the form of loans or loan guarantees, but would not reveal just how much cash the government was willing to stump up.

After taking a tour of the plant and meeting bosses, he told reporters: "What I have seen here today shows a high productivity, low costs, no absenteeism, high safety workforce, where the unions are working very closely with the management."

Lord Mandelson said he had been speaking regularly with the chief executive of Magna, the Canadian parts firm which is the preferred bidder in the takeover of GME.

He said: "It's not a done deal, they're still working out their business plan.

"That's why I'm working very closely with the investors, the German government and ministers in other countries. We are doing everything we can.

"It's very intense and complex and not at all easy, but I will achieve all I can for Vauxhall and for our country.

"The British government is absolutely determined to fight for every job, every plant."