PRIME Minister and Witney MP David Cameron, above, said: “I welcome this major investment by BMW Group in UK manufacturing.

“The production and export of iconic British cars like the Mini is making a real contribution to the rebalancing of the economy that this government is determined to achieve.

“It’s a tremendous vote of confidence in the skills and capabilities of the company’s British workforce and in the future of UK manufacturing.

“The Mini plant in Oxford has been one of our great manufacturing success stories, they should be hugely proud of their achievements. They have shown once again that the UK is a major player in the global automotive industry.”

Oxford East MP Andrew Smith said the investment was a “huge tribute” to the factory’s work force.

He said: “This decision secures the cornerstone of the Oxford economy for the future.

And Nicola Blackwood, MP for Oxford West and Abingdon, said: “It’s fantastic. A lot of us will have bad memories about the job losses a few years ago.

“Families around Oxfordshire must be breathing a sigh of relief today, it’s wonderful.”