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Firms that boost British jobs will be first in line for road, rail, hospital and school building contracts under new plans to be unveiled this week.

Pat McFadden, the Chancellor of the Duchy of Lancaster, will launch a consultation on an overhaul to procurement rules to make creating high quality British jobs and boosting skill in local communities key requirements for companies bidding for big projects.

The proposals will come in the government’s new infrastructure strategy in the coming week, alongside billions of pounds of investment in projects to create jobs.

Mr McFadden, said: “Whether it's building roads, railways or schools, we want to open up opportunities on major infrastructure projects for firms that boost British jobs and skills.

"The new rules will deliver on our Plan for Change by rewarding companies that put money in working people’s pockets as we invest in the country’s future."

Under the new proposals, public bodies would have to give more weight to firms that can show they will boost British jobs and skills in their bids for contracts.

The change will apply to major government projects including transport investments, as well as school and hospital building schemes.

The changes will mean public sector organisations seeking to launch major infrastructure projects will reward suppliers that can show they will bring benefits targeted to the specific needs of a community.

This could include firms applying for road building projects offering apprenticeships, T-level industry placements and opportunities for care leavers.

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And following through on the pledges will be mandatory - preventing firms from backing out after contracts are awarded.

Gareth Stace, Director-General of UK Steel said: “The Government’s ambition to change procurement law will create a virtuous circle of quality jobs and ensure the benefits of infrastructure investment are felt across our regions and nations, uplifting foundation sectors such as steel, concrete and cement.

"With billions of pounds of infrastructure projects on the table, there is a clear opportunity for firms to hit social value obligations by choosing to buy UK-made steel, boosting employment opportunities, and supporting the creation of new jobs and apprenticeships. This is a win-win scenario.”