By Kirsty-Louise Card,Uk Export Finance

Copyright expressandstar

The manufacturer runs factories in Solihull, Wolverhampton and Halewood, employs 34,000 people in the UK, and supports a supply chain of mainly small and medium firms that together employ about 120,000 more.

Business Secretary Peter Kyle confirmed the backing today (Saturday), saying the move would give “certainty and confidence” to the car maker and its suppliers.

The funding will come in the form of an Export Development Guarantee, provided by UK Export Finance and repaid over five years. The guarantee allows a commercial bank to release the loan, strengthening JLR’s cash reserves and helping suppliers hit by the recent shutdown.

The announcement follows Mr Kyle’s visit this week to JLR and to Webasto, one of the firm’s key supply chain partners.

Ministers said the decisive action shows the Government’s commitment to the West Midlands’ automotive industry as part of its modern Industrial Strategy and wider Plan for Change, aimed at boosting growth and creating skilled jobs.

Business and Trade Secretary Peter Kyle said: “This cyber-attack was not only an assault on an iconic British brand, but on our world-leading automotive sector and the men and women whose livelihoods depend on it.

“Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK.

“We’re backing our automotive sector for the long term through our modern Industrial Strategy and the landmark trade deals we’ve signed to boost exports, as part of our Plan for Change.”

Chancellor of the Exchequer Rachel Reeves said: “Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy.

“Today we are protecting thousands of those jobs with up to £1.5 billion in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”

The announcement comes after the Business Secretary and Industry Minister visited JLR’s Gaydon headquarters and sunroof supplier Webasto this week to meet senior leaders, staff and supply chain partners.

Officials have been in daily contact with JLR and cyber-security experts to discuss concerns and the help needed to restart production.

Welcoming the support, Mayor of the West Midlands Richard Parker said: “This support is vital to the West Midlands – it will keep people in work, protect the smaller firms that rely on JLR and give our region the stability it needs while production is paused.

“I’ll keep working hard with ministers and industry to safeguard jobs and make sure our world-class automotive sector comes through this stronger.”

It follows a series of recent government measures to boost the UK car industry, including new trade deals with India and the United States to cut export tariffs, an Electric Car Grant to speed the switch to zero-emission vehicles, and lower industrial electricity costs through the British Industrial Competitiveness Scheme.

Under the modern Industrial Strategy, ministers have also pledged £2 billion for automotive capital and research projects to 2030 and a further £500 million to extend R&D support to 2035.