UK Government Steps In With £1.5bn Loan Guarantee to Support Jaguar Land Rover Amid Cyber-Attack Shutdown
The UK government has announced a £1.5 billion loan guarantee to Jaguar Land Rover (JLR), aimed at protecting jobs and stabilising its supply chain as the carmaker continues to grapple with a crippling cyber-attack.
Business Secretary Peter Kyle confirmed that the loan, arranged through a commercial bank, will be underwritten by the government to provide critical financial support. The move is designed to safeguard tens of thousands of jobs in the West Midlands, Merseyside, and across the UK, where JLR and its suppliers play a central role in the automotive industry.
Cyber-Attack Halts JLR Production
The carmaker has been forced to suspend production since 31 August, after a hacking group known as Scattered Lapsus$ Hunters claimed responsibility for a cyber-attack that paralysed its IT systems. Weeks later, the disruption has left JLR unable to build cars, with operations across its three major UK plants — in Solihull, Wolverhampton, and Halewood — still at a standstill.
Typically, JLR produces around 1,000 vehicles a day, but the shutdown has halted manufacturing completely. According to industry estimates, the company is losing at least £50 million per week as the crisis drags on.
The prolonged disruption has raised fears for 700 suppliers, many of them small businesses, who rely heavily on JLR contracts. Some companies told a parliamentary committee that they only had a week’s worth of cash left, sparking concerns of widespread insolvencies within the supply chain.
Protecting Jobs and Suppliers
Kyle said the loan guarantee would not only help JLR itself but also provide critical stability for suppliers who are struggling to stay afloat.
“We are offering a £1.5bn credit facility to JLR with the explicit intention that it supports the supply chain,” he said. “This is a big moment: it will offer enormous resources to JLR and its partners to get through the immediate challenges they face.”
The loan, arranged through the government’s Export Development Guarantee (EDG) scheme, will be repaid by JLR over five years. The facility is designed to improve the company’s cash flow so that it can begin clearing a backlog of payments to suppliers who have gone weeks without orders.
Political and Industry Reactions
Chancellor Rachel Reeves welcomed the intervention, calling it essential to protecting Britain’s car industry.
“Today we are protecting thousands of jobs with up to £1.5bn in additional private finance,” she said. “This will help JLR support its supply chain and safeguard a vital part of the UK automotive sector.”
The move has attracted cross-party support, though some criticised the speed of the response.
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Andrew Griffith, Shadow Business Secretary, said while he welcomed the financial lifeline, “it took too long to get there” and urged Labour to push for a cyber reinsurance scheme to protect UK firms from future state-backed cyberattacks.
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Sarah Olney, Liberal Democrat business spokesperson, also praised the action but warned the government had been “too slow to act,” calling for additional measures such as a furlough scheme for affected workers if necessary.
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Local MPs from both Labour and Conservative benches supported the move, but Conservative MP Saqib Bhatti of Solihull criticised ministers for not acting quickly enough: “Do I think the government moved too slowly? 100%. They need to learn from this and be more nimble.”
Unions have also cautiously welcomed the guarantee. Sharon Graham, General Secretary of Unite, described it as “an important first step,” but warned that the money must be used to protect jobs and skills across JLR and its supply chain.
Historic Government Response
The decision marks the first time a UK company has received government-backed financial support directly as a result of a cyber-attack. The scale of JLR’s operations and its importance to Britain’s car industry made the intervention unavoidable, analysts say.
More than 30,000 people are directly employed at JLR’s UK plants, with another 100,000 jobs tied to the wider supply chain. For many smaller firms that supply parts exclusively to JLR, the shutdown has been devastating, putting them at risk of collapse without immediate financial help.
Recovery Efforts Underway
Since the attack, JLR has worked around the clock with cybersecurity experts, the National Cyber Security Centre (NCSC), and law enforcement to restore its systems. Some IT services have been partially restarted, but full production is not expected to resume until 1 October at the earliest.
A company spokesperson said:
“Our teams continue to work tirelessly alongside cybersecurity specialists and government agencies to ensure we restart in a safe and secure manner. The foundational work of our recovery programme is firmly under way, and we will continue to provide regular updates to colleagues, retailers, and suppliers.”
In the meantime, JLR workers have been told to remain at home, with no clear return date. Many staff are anxious about job security, although unions say the government’s support package offers a degree of reassurance.
Wider Implications for UK Industry
The JLR crisis highlights the growing threat of cyberattacks to critical industries. Earlier this year, the same hacking group targeted Marks & Spencer and Co-op, demonstrating how even household names are vulnerable.
Industry experts warn that more companies could face similar risks, and have urged the government to develop long-term strategies, such as mandatory cyber resilience standards and insurance protections, to shield businesses from future attacks.
For now, the £1.5bn lifeline provides a crucial safety net for JLR and its network of suppliers. But with production still on hold and uncertainty about when normal operations will resume, the road to recovery may be long.