Government Approves £1.5bn Lifeline for Jaguar Land Rover Support package unveiled after cyber-attack disrupts operations

Jaguar Land Rover (JLR) will receive government support through a guarantee unlocking up to £1.5bn in financing, Business Secretary Peter Kyle confirmed today (28 September).

The loan, issued by a commercial bank and backed by UK Export Finance's Export Development Guarantee, will be repaid over five years. The package is designed to strengthen JLR's cash reserves and stabilise its supply chain, which has been heavily disrupted by the recent cyber-attack that forced a temporary 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."

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."

The government said it has been in daily contact with JLR and cyber experts to help restore production. The loan guarantee comes alongside a string of wider measures to support the UK car industry, from new trade deals with India and the US to incentives for electric vehicles and lower energy costs for manufacturers. Ministers argue the investment will not only stabilise JLR after the cyber-attack, but also strengthen Britain's automotive sector as it shifts toward zero-emission and high-tech manufacturing.