Two giants of the industrial age who founded Smethwick’s historic Soho Foundry are set to appear on the new £50 banknote, it has been revealed.

Entrepreneur Matthew Boulton and engineer James Watt – whose 18th century business partnership led to developments in the steam engine which helped drive the industrial revolution – will both appear on the note when it is launched in 18 months, the first time two portraits have appeared together.

The announcement was made by the Bank of England governor, Mervyn King, as he opened a new exhibition celebrating Boulton at Birmingham Museum and Art Gallery last night.

The Boulton and Watt banknote will see the pair appear together on the reverse of the note.

Mr King said: “Just as the Bank of England plays an essential role in the economy as the United Kingdom’s central bank, so too did Boulton and Watt’s steam engines and their many other innovations.”