The government will underwrite a £1.5bn loan to Jaguar Land Rover (JLR) after a cyber-attack forced the carmaker to suspend production, raising fears for tens of thousands of jobs across the UK.
Business Secretary Peter Kyle said the loan guarantee, provided through a commercial bank, would give the company’s suppliers “certainty” as disruption continues.
Support for Suppliers and Jobs
JLR employs around 30,000 people at its factories in Solihull, Wolverhampton and Halewood, while an estimated 100,000 more work in its supply chain. Many of these firms are small businesses, with some warning they were just days away from running out of cash.
The loan will be backed through the Export Development Guarantee scheme, which supports UK companies trading overseas. JLR is expected to repay the money over five years, using the funds to clear a backlog of supplier payments.
Production has been halted since the end of August, when hackers targeted the company’s IT systems. JLR has not built a car throughout September, and operations are not expected to restart until at least 1 October.
First Major Cyber-Related Bailout
It is believed to be the first time the UK government has stepped in to support a company financially following a cyber-attack. The shutdown is estimated to be costing JLR around £50m a week, according to industry analysts.
The cyber group Scattered Lapsus$ Hunters has claimed responsibility for the attack. The organisation has previously been linked to incidents affecting high-profile retailers including Marks & Spencer and Co-op.
Under normal circumstances, JLR builds about 1,000 vehicles a day across its three UK factories. The halt has not only frozen production but also paused orders with more than 700 suppliers.
Political Reactions
Chancellor Rachel Reeves said the decision would “protect thousands of jobs and safeguard a vital part of the British car industry”.
Opposition figures broadly welcomed the support but criticised the government’s timing. Shadow business secretary Andrew Griffith said ministers had “taken too long” and called for a national cyber reinsurance scheme to protect British firms from state-backed attacks.
The Liberal Democrats’ business spokesperson Sarah Olney echoed concerns, describing the response as “too slow” and urging the government to consider a furlough scheme for workers if production delays continue.
Response From Unions and MPs
Union Unite, which represents thousands of JLR employees and supply chain workers, described the loan guarantee as “an important first step”. General secretary Sharon Graham said the money “must now be used to ensure job guarantees and to also protect skills and pay”.
Local MPs across the West Midlands and Merseyside also backed the intervention. Labour’s Sarah Coombes, MP for West Bromwich, said the crisis had “put thousands of jobs in the Black Country at risk”, while Conservative MP Saqib Bhatti said that although the guarantee was necessary, the government had been “too slow to act”.
Company Statement
JLR confirmed that it is working with cybersecurity specialists, the National Cyber Security Centre (NCSC) and law enforcement agencies to restore its systems.
“Our teams continue to work around the clock to ensure we restart in a safe and secure manner,” a spokesperson said. “The foundational work of our recovery programme is firmly under way, and we will continue to provide regular updates to our colleagues, retailers and suppliers.”
