Mr Osborne’s visit came as BSW Timber announced the extra jobs for the Carlisle and Dalbeattie mills due to additional shifts at both sites to meet growing demand for sawn timber.

The tour also marked the latest phase of a £70m five-year investment programme at the UK’s largest sawmilling group.

“Visiting BSW Timber today, I have been hugely impressed by the drive and determination I’ve seen,” said the chancellor.

BSW Timber chief executive Tony Hackney said the group had worked hard to get to its current position through new technology and improved efficiencies.

“We are now producing more home-grown timber than ever before,” added Mr Hackney. “This is leading to increased sustainable usage in expanding UK markets such as timber-framed houses and the repair and maintenance sector.”

However, Mr Hackney said it was important business confidence in the sector was underpinned by continued investment in sustainably managed productive woodland.

BSW Timber’s Carlisle mill produces around 180,000m3 of sawn timber each year, supporting 170 jobs, while the Dalbeattie mill produces around 300,000m3, supporting 140 jobs