A further £6.75m has also been allocated to Liverpool’s combined authority’s academic and private sector programme, the MusicFutures cluster.
Working with Royal Liverpool Philharmonic and the Liverpool M&S Bank Arena, the cluster will fund training for musicians, teachers and business using technology to make the “live music sector more environmentally sustainable”.
This could mean building simulated environments as well as having computer-generated creations.
Nandy said: “Liverpool and Merseyside hold a special place in our nation’s music landscape and this funding will support imagination and experimentation across the city and region.
“Birmingham and the West Midlands have a rich industrial history, and we are putting them at the forefront of a potential new industry developing the amazing technology that will revolutionise visual effects in film, theatre and gaming.”