UK government guarantees £1.5bn loan for JLR supply chain after cyber attack

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The UK government is to underwrite a £1.5 billion commercial loan guarantee for Jaguar Land Rover (JLR) to support its struggling supply chain following a crippling cyber attack that has halted production for weeks.

The announcement, made by Business Secretary Peter Kyle and Chancellor Rachel Reeves, aims to protect thousands of jobs across the West Midlands, Merseyside, and the wider UK automotive sector.

The car manufacturer, owned by India’s Tata Motors, has suspended production at its UK plants since being targeted by hackers, identified as Scattered Lapsus$ Hunters, at the end of August.

The prolonged shutdown has stopped all new orders for parts and, according to a parliamentary committee, left some of JLR’s $\text{700}$ suppliers, many of them small businesses, with only days of cash remaining. The halt is estimated to be costing JLR itself at least $\text{£50m}$ per week.

Business Secretary Peter Kyle said the support, backed by the Export Development Guarantee (EDG), was necessary to protect the supply chain. “This cyber-attack was not only an assault on an iconic British brand, but on our world-leading automotive sector,” he stated. Chancellor Rachel Reeves added that the move protects “a vital part of the British car industry.”

The $\text{£1.5bn}$ loan, which JLR will repay over five years, is intended to boost the company’s cash reserves to enable it to clear a “backlog of payments” to its suppliers. While JLR is working to clear these payments, production is not expected to resume at its UK facilities until 1 October at the earliest.

The action has been welcomed by trade union Unite as an “important first step” toward protecting jobs and skills. However, opposition figures, including Shadow Business Secretary Andrew Griffith and Liberal Democrat Sarah Olney, criticised the government for being “too slow to act” and called for further support if the crisis persists. The government is treating the situation seriously, with JLR teams working round-the-clock alongside the NCSC to ensure a safe and secure operational restart. 

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