A strike threat at British Sugar's factories has been averted after 500 workers accepted an improved pay deal.

The Unite union said its members at British Sugar's factories in Norfolk, Suffolk and Nottinghamshire had voted to accept a 3.5pc pay increase.

A previous offer of 2pc was overwhelmingly rejected in a consultative ballot of technicians, engineers and supply chain operatives.

That prompted a threat of strike action at the firm's four factories in Cantley, near Acle, Wissington in west Norfolk, Bury St Edmunds in Suffolk, and Newark in Nottinghamshire.

But the union said the proposed strike ballot has now been cancelled after the pay dispute was resolved.

Unite regional officer Mark Plumb said: "This sweet pay deal was achieved because our members stood firm in demanding a rise that reflected their hard work and dedication to British Sugar.

"It is a prime example of what can be achieved through strong union organisation, which is why we urge workers looking to improve their pay and terms and conditions to join Unite and to get their colleagues to do the same.

"Unite looks forward to working productively with British Sugar in the future for the best interests of our members, as the company continues to go from strength to strength."

A British Sugar spokesperson said: “We are pleased to have reached agreement on our pay offer for our factory based people.”

The company is also in the process of negotiating with its sugar beet growers across East Anglia to agree a price for the 2022/23 beet crop.

Last month, farmers criticised the announcement of an "indicative" price of £25 per tonne before contract talks had concluded.

The National Farmers' Union's Sugar Board (NFU Sugar) said the price is not enough to counteract the risk of growing a crop which was badly damaged by viruses last year.

But British Sugar said the price already reflects a 23pc increase on the previous year, and was announced early to give growers an indication of the minimum income from their crop to help them plan their finances.