Both a British and Japanese car manufacturer are demanding guarantees from the British government over the impact of Brexit on their businesses before they commit to future investment.

Nissan, whose plant in Sunderland is Britain's biggest, wants the UK to pledge compensation for any tax barriers that may be raised as a result of leaving the European Union.

The Sunderland plant is Nissan's biggest factory in Europe, with a capacity of 500,000 vehicles a year. It represents around a third of Britain's total car output and the company is due to decide where to build its new Qashqai model next year.

Nissan delays new investments in Sunderland until UK concludes Brexit negotiations with the EU https://t.co/sNV7VNl0dp

— StewartStevensonMSP (@zsstevens) September 30, 2016

Jaguar Land Rover would also be looking for a similar deal insisting there should be a level playing field for all car manufacturers in the country after the Brexit negotiations have concluded.

Nissan boss Carlos Ghosn said: "If I need to make an investment in the next few months and I can't wait until the end of Brexit, then I have to make a deal with the UK Government."

"You can have commitments of compensation in case you have something negative."

"If there are tax barriers being established on cars, you have to have a commitment for carmakers who export to Europe that there is some kind of compensation," he added.