The government has committed £20m towards a £1bn cyber centre.

The Golden Valley development will be built on land next to GCHQ in Cheltenham and aims to establish the town as the cyber capital of the UK.

Cheltenham Council had provisionally secured funding in the third round of the previous government’s Leveling Up Fund, but confirmation that the money would be awarded under the new government’s plans came after the budget on 30 October.

The development is expected to create 12,000 new jobs and more than 1,000 homes.

Confirmation will allow the council to begin drawing down funding to continue delivering the first phase of the development.

A letter from Deputy First Minister Angela Rayner said the government would protect projects managed by the Ministry of Housing, Communities and Local Government “announced in rounds one to three of the Leveling Up Fund, recognizing that many of these projects will unlock growth vital place. and regeneration throughout the country”.

Cheltenham Council leader Rowena Hay said: “(The centre) will be a national asset that has the potential to build on Cheltenham’s place as a world leader in technology and security.

“We now have confirmation that we can continue to realize the vision and ambition of Golden Valley Development and we look forward to working closely with all stakeholders to make this transformative project a reality.”

In June, developer Henry Boot confirmed that architects Sheppard Robson will lead the second phase of the project, designing two buildings.