The chancellor has allocated £10 million to Pwllheli, in the first tranche of cash given to Wales for a superfast broadband rollout.

George Osborne has handed over the cash to the Welsh Assembly government to go towards a national broadband delivery plan, which will pay particular attention to rural areas. Pwllheli has population of 4,000.

Osborne has not spelled out how many citizens and businesses will benefit from the £10 million funding. But he says it is only the first tranche of funding Wales will receive to deliver the infrastructure.

On announcing the funding during a visit to Wrexham, Osborne said: "Having seen the potential growth opportunities in Wrexham today I am pleased to announce £10 million additional funding for Wales that will support the extension of superfast broadband to Pwllheli and the surrounding areas.

"This funding will support the Welsh economy and help drive the private sector-led recovery by driving innovation and commercial opportunities in communities across Wales."

He said, "This is just the first wave of funding for Wales from the over half a billion pounds we have already set aside to extend superfast broadband across the UK."

Welsh Assembly ministers have set a target for all businesses to have access to "next generation broadband" by mid-2016, and all households by 2020 - "ahead of European targets".