The Government announces taxpayer-funded support package for JLR following the recent cyber-attack
The Government has agreed to support Jaguar Land Rover (JLR) with a taxpayer-funded guarantee expected to unlock up to £1.5 billion to give certainty to its supply chain following a recent cyber-attack, Business Secretary Peter Kyle has announced today (28 September).
The loan from a commercial bank, backed by the taxpayer-funded Export Development Guarantee (EDG) provided by export credit agency UK Export Finance, will be paid back over five years and bolster JLR’s cash reserves so it can support its supply chain which has been greatly impacted by the shutdown.
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Business and Trade Secretary Peter Kyle said:
Chancellor of the Exchequer Rachel Reeves said:
With plants in Solihull and Wolverhampton in the West Midlands, plus Halewood in Merseyside, JLR is one of the UK’s largest exporters and a major employer – employing 34,000 directly in its UK operations. It also operates the largest supply chain in the UK automotive sector, much of it made up of SMEs, and employing around 120,000 people.
This support follows a visit by the Business Secretary and Industry Minister to JLR’s Gaydon headquarters and JLR sunroof manufacturer Webasto this week to meet senior leaders, workers and members of its supply chain.
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Mayor of the West Midlands Richard Parker said:
The Government has been in daily contact with JLR and cyber experts to listen to concerns and what support can be provided to get production back online.
The taxpayer-funded support follows several significant actions by government in recent months to back the UK’s automotive sector, including securing landmark trade deals with India and the US to turbocharge export opportunities for UK companies by slashing tariffs.
The Government also launched a taxpayer-funded Electric Car Grant to support the transition to zero emission vehicles and incentivise sustainable manufacturing, and slashed industrial electricity costs for thousands of companies through the British Industrial Competitiveness Scheme, as part of the modern Industrial Strategy.
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The Strategy also committed £2 billion of taxpayer capital and R&D funding for the auto sector to 2030, and an additional £500 million to extend the R&D support for the industry to 2035.
Notes to Editors