THE Government has admitted that it is continuing in talks with Rover and parent company BMW over future investment plans for the manufacturer's troubled Longbridge factory. Prime Minister Tony Blair said the recent backing from workers for the introduction of flexible working practices and the decision to build the new Mini at the plant were 'very important milestones in helping to secure further investment for the plant'.

However, he stressed that the Government had not been asked for financial help even though it is understood that the replacement for the 200 and 400 models will only be built at Longbridge if state aid is forthcoming to help offset the expected £2 billion investment.