The UK government has stepped in to support Jaguar Land Rover (JLR) with a £1.5 billion loan guarantee, as the carmaker struggles to recover from a cyber-attack that has forced it to halt production for nearly a month.
Business Secretary Peter Kyle confirmed on Sunday that the loan, arranged through a commercial bank, will be underwritten by the government under the Export Development Guarantee (EDG) scheme. The facility is aimed at protecting tens of thousands of jobs in JLR’s supply chain as the company battles to restore operations.
The cyber-attack, which struck JLR on 31 August, has frozen production at its factories in Solihull and Wolverhampton in the West Midlands, and Halewood in Merseyside. The stoppage has raised alarm among suppliers, many of them small businesses with limited cash reserves. According to a parliamentary committee, some firms supplying JLR had warned they had only days of cash left, with no new orders placed since the shutdown began.
About 30,000 people work directly at JLR’s UK plants, with a further 100,000 employed across its 700 suppliers. Some of these firms rely exclusively on the manufacturer, raising fears of insolvencies if disruption continues. The company typically builds 1,000 cars per day, but no vehicles have been produced since the start of September. The suspension is estimated to be costing JLR around £50 million per week.
Kyle said the loan guarantee was designed to shore up suppliers’ confidence and safeguard employment in affected regions. “We are offering a £1.5 billion credit facility to JLR with the explicit intention that it supports the supply chain into JLR as well,” he said. “This is a big moment that will help JLR and its supply chain get through the immediate challenges they face.”
Chancellor Rachel Reeves echoed the sentiment, calling the support vital for “protecting thousands of jobs and a key pillar of the British car industry.”
The intervention, however, has sparked political debate. Shadow business secretary Andrew Griffith welcomed the aid but criticised the delay, urging ministers to establish a cyber reinsurance scheme to shield businesses from state-backed cyber-attacks. Liberal Democrat business spokesperson Sarah Olney praised the loan but also warned the government had been “too slow to act,” calling for contingency plans such as a furlough scheme for affected workers.
Local MPs and unions have broadly backed the move. Labour MP Sarah Coombes said the decision “protected thousands of jobs in the Black Country,” while Conservative MP Saqib Bhatti acknowledged the necessity of the loan but criticised the government’s sluggish response. Unite general secretary Sharon Graham described the measure as an “important first step,” stressing the funds must translate into job and pay security.
A group known as Scattered Lapsus$ Hunters has claimed responsibility for the hack, having previously targeted several UK retailers. JLR said teams were working “around the clock” with cybersecurity specialists, the National Cyber Security Centre and law enforcement to safely restart operations. Production is not expected to resume before 1 October.
