David Cameron has announced there will be an extra £45m worth of funding up for grabs for companies developing ‘internet of things’ technologies.

The prime minister announced the funding to develop technologies that that connect every-day devices to the internet as he arrived at the CeBit 2014 trade fair in Germany, where he is holding talks with the German chancellor Angela Merkel.

The prime minister announced the funding to develop the ‘internet of things’ as he arrived at the CeBit 2014 trade fair in Germany, where he is holding talks with the German chancellor Angela Merkel.

He said the internet of things is part of a ‘new industrial revolution’ that he wants the UK and Germany to lead.

He said: “I see the internet of things as a huge transformative development - a way of boosting productivity, of keeping us healthier, making transport more efficient, reducing energy needs, tackling climate change.

“These are developments that could allow literally billions of everyday objects to talk to each other over the internet using low-cost, low-power chips.

“Electricity meters that talk to the grid to get you the best deals. Health monitors that keep an eye on your heart rate. Water pipes that warn of a fall in pressure.

“We are on the brink of a new industrial revolution and I want us - the UK and Germany - to lead it.”