By Ben Perrin

Copyright birminghammail

The Government is backing Jaguar Land Rover with a loan guarantee expected to unlock £1.5 billion to support its supply chain after a cyber attack. The announcement follows the Business Secretary Peter Kyle’s visit to the luxury car manufacturer and supply chain firm Webasto in Solihull earlier this week. The Export Development Guarantee (EDG) – to be paid back over five years – will be provided by export credit agency UK Export Finance. READ MORE: Small business owners ‘hurting’ as they lose hundreds every day amid Jaguar Land Rover’s shut down READ MORE: Expert questions government support to help Jaguar Land Rover during ‘biggest crisis ever’ It will unlock a loan from a commercial bank that will bolster JLR’s cash reserves so it can support its supply chain which has been greatly impacted by the shutdown. 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.” 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 support follows several significant actions by the 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 an 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. The Strategy also committed £2 billion 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. 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.” 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. 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.”