Glasgow School of Art has been handed £5 million from the UK government towards a new building for graduates and research.

George Osborne, the chancellor of the exchequer, has announced the funding for the Graduate and Research Centre at the Commonwealth Games Business Conference in Glasgow. The centre is the next stage of the redevelopment of the GSA campus in the city centre, although as yet it does not have a confirmed location.

Last week the UK Government also pledged £5m to the efforts to restore the Mackintosh Building which was devastated by a fire in May.

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Mr Osborne, whose father co-founded the firm of fabric and wallpapers designers Osborne & Little, said: "I grew up in a family that valued design.

"The name of Charles Rennie Mackintosh - synonymous with iconic architecture and design - is a magnet that draws people time and again to Glasgow.

"And there can be no doubt that the jewel in the Mackintosh crown is the Glasgow School of Art.

"The UK government has already made a £5m contribution to the Mackintosh Appeal to help ensure that the building is restored to its former glory.

"And we are today making an additional £5m contribution to support the School's new Graduate and Research Centre.

Professor Tom Inns, director of The Glasgow School of Art, said: "We are extremely grateful to the UK government for this support which recognises both the importance of research in creative disciplines to the future of the British economy, and the international profile of The Glasgow School of Art as a leading centre of studio-based creative education."

Chivas Brothers, makers of whisky and gin, this week added to the £750,000 in donations the art school (GSA) revealed it had received last week for the fund to restore Charles Rennie Mackintosh's architectural masterpiece.