By Priya Raghuvanshi

Copyright timesnownews

In response to a significant cyber-attack earlier this month, the UK Government has announced a five-year loan guarantee for Jaguar Land Rover (JLR) to support its supply chain and stabilise operations, according to a Bloomberg report. The funding, provided by a commercial bank and guaranteed through UK Export Finance, aims to reinforce the country’s automotive industry during a period of high disruption. The attack forced Britain’s largest carmaker to pause production at key sites in the UK, Slovakia, Brazil, and India. As a result, the wider supply chain experienced a knock-on effect, with some suppliers forced to send workers home and others left waiting for delayed payments. Supporting an Industry Under Strain The move is part of the Labour government’s broader efforts to shore up a critical sector of the UK economy. With JLR employing 34,000 people directly in the UK and supporting a further 120,000 jobs through its supply network, the fallout from the attack was felt across multiple regions and industries. “This loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK,” said Business Secretary Peter Kyle, who recently toured JLR’s headquarters and supplier Webasto, added the report. The timing also coincides with Labour’s annual party conference in Liverpool, where economic stability and industrial resilience are expected to be major talking points. Recovery Efforts Already Underway JLR confirmed that key internal systems have been restored, enabling the company to clear its backlog of supplier invoices, accelerate the distribution of parts to dealers, and ramp up vehicle sales and registrations. The automaker is targeting a partial restart of production by October 1, though it noted that returning to full-scale operations will take additional time. Political and Economic Implications The Labour government, led by Prime Minister Keir Starmer, had been in ongoing discussions to support suppliers impacted by the shutdown. With the auto sector playing a pivotal role in the UK’s industrial strategy, the loan guarantee sends a signal of the government’s commitment to protecting domestic manufacturing and preserving high-skilled jobs, states the Bloomberg report. The support comes amid a series of government initiatives aimed at revitalising the auto sector, ranging from zero-emission vehicle grants to trade deals.