The Government has announced £7.5m to help support Sir Ben Ainslie's America's Cup team and their proposal to be based on the Camber in Portsmouth following Portsmouth City Council's recent planning approval for the site of the new base.

The headquarters will initially employ around 90 people, with many more potential jobs in the supply chain. It will become the focal point for the design, construction and development of the team's boats and will also provide sports science and fitness facilities.

The Prime Minister; David Cameron commented: "Sir Ben Ainslie's project is truly fantastic news for Portsmouth and the Solent. It will not only build on Portsmouth's global reputation as a centre of marine and maritime excellence but will also deliver a real sporting and economic boost to the UK. It is a great example of our long-term plan - creating jobs as well as opportunities for young people to develop their skills through apprenticeships."

A visitor centre showcasing the sport, innovation, technology and sustainability will be at the heart of the base, and will welcome schools and community groups. Visitors will experience the construction and on-going operation of the team's America's Cup boats first-hand.

Sir Ben Ainslie, BAR Team Principal, said: "Portsmouth has a great maritime heritage and we felt it was a natural home for the team's permanent base in the UK. There is excellent access to the water for the team's training and to host future America's Cup events."

The project could provide significant economic and sporting benefits to the UK, particularly for Portsmouth and the wider Solent area, as a recent report on Team New Zealand suggested that its base in Auckland created 1,000 jobs and brought an $88m boost to the local economy.

Construction work will start immediately, with planned completion in May 2015.