One of the UK's biggest banks has pledged £500 million of lending support to the manufacturing sector - just as Bradford Chamber of Commerce issued a rallying call asking that industry receive more assistance.

Barclays said it was keen to lend cash to manufacturing firms as it predicted that the sector would grow by up to two per cent during 2005.

It said gradual improvements in order books and the ability of many UK manufacturers to remain globally competitive through increasing levels of research and development and improved technology gave good grounds for optimism.

Barclays said it expected its lending to spread across all regions of the UK and also boost industry sub-sectors such as

pharmaceuticals, chemicals, aerospace, biotechnology, electronics, automotive, food production and medical equipment.

It is hoped the Bradford district - which still has one of the highest proportions of manufacturing industry in the local economy - will benefit.

Yesterday, the Telegraph & Argus reported how Bradford Chamber of Commerce had carried out a survey of members which identified that manufacturing support was top of the list of their concerns.

Andy Martin, national director for manufacturing at Barclays said: "A strong manufacturing sector is good for the health of the UK and a determinant of its position in the global economy.

"Working on a daily basis with many UK manufacturers, I see a large number of well-managed companies which have both the desire and the ability to expand and grow if the right finance is available.

"I believe that many UK manufacturers are responding positively and proactively to the challenges they have faced in recent years such as rising raw material and energy costs, the strength of sterling against the dollar and the emergence of Asian competitors.

"In this context I believe that our announcement of financial support for further development within this sector is well timed."

Mike Cartwright, policy executive at Bradford Chamber of Commerce, agreed.

He said: "This move comes at a good time for manufacturers, who continue to face difficult challenges such as foreign competition. Financial support for companies to both resist those challenges and go on to develop their strengths is welcomed.

"Local companies are telling us of the need for more help for those in manufacturing. We hope that more initiatives will be brought forward, through the likes of the Airedale & Bradford Manufacturing Alliance and the Manufacturing Advisory Service, to secure the future of industry in the district."

Sir Digby Jones, director general of the CBI, added: "This is a welcome vote of confidence in UK manufacturing and a timely boost to the sector's financing and investment needs."