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UK Government Guarantees 1.5 Billion Pounds Loan To Stabilise Jaguar Land Rover After Cyber-Attack
Photo credit: Land Rover
London-The UK Government has moved swiftly to support Jaguar Land Rover (JLR), announcing a loan guarantee expected to unlock up to £1.5 billion in commercial funding. The measure is designed to provide immediate certainty to JLR’s supply chain following a significant cyber-attack, Business Secretary Peter Kyle confirmed today (September 28).
The funding will take the form of a loan from a commercial bank, backed by an Export Development Guarantee (EDG) provided by UK Export Finance, the government’s export credit agency. This five-year arrangement aims to reinforce JLR’s cash reserves, enabling it to financially support its vast network of suppliers, which was heavily disrupted by the forced operational shutdown.
Protecting an Iconic Brand and Supply Chain
Business and Trade Secretary Peter Kyle characterised the cyber-attack as not only an assault on an iconic British brand but also on the UK’s automotive sector and the thousands of livelihoods dependent 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," Mr Kyle stated. He added that the government is backing the automotive sector for the long term through its modern Industrial Strategy.
Chancellor of the Exchequer Rachel Reeves underscored the importance of the intervention, calling Jaguar Land Rover an iconic British company and "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," Ms Reeves said.
JLR is one of the UK’s largest exporters, employing 34,000 people directly at plants in Solihull, Wolverhampton, and Halewood. Its supply chain, largely composed of SMEs, employs an estimated 120,000 people.
Local Impact and Ongoing Support
The necessity of the support was highlighted by West Midlands Mayor Richard Parker. "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," he said.
The government has been in daily contact with JLR and cyber experts to determine necessary support. This financial measure follows a recent visit by the Business Secretary and Industry Minister to JLR’s Gaydon headquarters and a key supplier, Webasto, to meet workers and supply chain representatives.
This support is consistent with the government’s broader strategy for the automotive sector, which has recently included securing landmark trade deals to boost exports, launching an Electric Car Grant to promote the shift to zero-emission vehicles, and implementing schemes to reduce industrial electricity costs. The strategy commits significant capital and research and development funding to the auto sector through to 2035.
The funding will take the form of a loan from a commercial bank, backed by an Export Development Guarantee (EDG) provided by UK Export Finance, the government’s export credit agency. This five-year arrangement aims to reinforce JLR’s cash reserves, enabling it to financially support its vast network of suppliers, which was heavily disrupted by the forced operational shutdown.
Protecting an Iconic Brand and Supply Chain
Business and Trade Secretary Peter Kyle characterised the cyber-attack as not only an assault on an iconic British brand but also on the UK’s automotive sector and the thousands of livelihoods dependent 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," Mr Kyle stated. He added that the government is backing the automotive sector for the long term through its modern Industrial Strategy.
Chancellor of the Exchequer Rachel Reeves underscored the importance of the intervention, calling Jaguar Land Rover an iconic British company and "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," Ms Reeves said.
JLR is one of the UK’s largest exporters, employing 34,000 people directly at plants in Solihull, Wolverhampton, and Halewood. Its supply chain, largely composed of SMEs, employs an estimated 120,000 people.
Local Impact and Ongoing Support
The necessity of the support was highlighted by West Midlands Mayor Richard Parker. "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," he said.
The government has been in daily contact with JLR and cyber experts to determine necessary support. This financial measure follows a recent visit by the Business Secretary and Industry Minister to JLR’s Gaydon headquarters and a key supplier, Webasto, to meet workers and supply chain representatives.
This support is consistent with the government’s broader strategy for the automotive sector, which has recently included securing landmark trade deals to boost exports, launching an Electric Car Grant to promote the shift to zero-emission vehicles, and implementing schemes to reduce industrial electricity costs. The strategy commits significant capital and research and development funding to the auto sector through to 2035.
Sep 29, 2025
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