6:28 am, September 29, 2025
The government has confirmed that it will underwrite a £1.5bn loan guarantee to Jaguar Land Rover (JLR) in the aftermath of a recent cyber-attack, which has seen its global production lines mothballed.
JLR has suspended production at its UK factories for several weeks after being targeted by hackers, with a graded restart of its factory lines said to be starting this week.
The five-year loan, from the commercial banking sector, is expected to give the company’s suppliers some certainty and is backed by the government’s export development guarantee, aimed at helping UK exporters.
It is believed to be a similar sort of loan to those handed out during the pandemic, whereby the government has backed up to 80% of the figure should JLR default on the terms.
Business 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.’
JLR, the UK’s largest carmaker, was hit by the cyberattack on 31 August, and since mid-September there have been warnings that smaller suppliers could collapse as a result of the production freeze.
Its car manufacturing sites have been silent ever since and are due to stay dormant until this Wednesday. JLR has been updating the industry weekly with extensions to the pause in production.
Reports this weekend suggested its engine facility in Wolverhampton could restart on October 6, but its thought a full restart of all production is weeks away.
Chancellor of the Exchequer Rachel Reeves added: ‘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 £1.5bn in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.’
However, a local MP has warned that the £1.5bn government loan may not be enough.
Liam Byrne, the Labout MP for Hodge Hill and Solihull North and chair of the Commons Business and Trade Select Committee, said: ‘I don’t think we can rule out further intervention.
‘It could well be that there are other instruments needed – something like a Covid-style loan, for example, may be needed for some suppliers, but we’ve got to make sure this first big loan package is put to work first.’
Workers union Unite called the loan an ‘important first step’.
General secretary Sharon Graham said: ‘This demonstrates that the government has listened to the concerns raised in meetings with Unite over recent days. This is exactly what the government should be doing, taking action to protect jobs.
‘The money provided must now be used to ensure job guarantees and to also protect skills and pay in JLR and its supply chain.’
Additional reporting: James Baggott
