Government to underwrite £1.5 billion loan to Jaguar Land Rover
The British carmaker has been forced to suspend production at its UK factories for several weeks after being targeted by hackers.
Last updated 28th Sep 2025
The Government will underwrite a £1.5 billion loan guarantee to Jaguar Land Rover (JLR) as it continues to face a shutdown following a mass cyber attack.
The British carmaker has been forced to suspend production at its UK factories for several weeks after being targeted by hackers.
The shutdown is expected to last until October 1 at the earliest, leaving the company's suppliers in limbo.
The loan, from a commercial bank, is expected to give those suppliers some certainty amid the continued shutdown.
The Government will give its backing to the loan through the Export Development Guarantee (EDG), a financial support mechanism aimed at helping UK companies who sell their goods overseas.
It will be paid back over five years, and will help to bolster JLR's cash reserves as it pays back companies in its supply chain, who have been majorly impacted by the shutdown.
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.
"We're backing our automotive sector for the long term through our modern industrial strategy and the landmark trade deals we've signed to boost exports, as part of our Plan for Change."
The UK's largest carmaker, JLR was hit by a cyber attack on August 31.
Unions and politicians have warned since that small suppliers producing parts for the car giant could collapse without urgent financial support.
Mr Kyle this week met workers and bosses at Webasto, which makes sunroofs for JLR.
The brand has the largest supply chain in the UK automotive sector, which employs around 120,000 people and is largely made up of small and medium-sized businesses.
Chancellor Rachel Reeves said: "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 £1.5 billion in additional private finance, helping them support their supply chain and protect a vital part of the British car industry."
Martin Allen, GMB Regional Secretary, said:
“It is a welcome step that Government have intervened in this way, to support the company as well as the tens of thousands of workers across it’s supply chain.
“From day one GMB have been clear that this moment called for urgent and considered action; that is exactly what we have seen from Government.
“The Midlands is at the heart of British manufacturing, and we cannot afford to leave it’s future to chance”.
In the aftermath of the attack, ministers have been in contact daily with JLR and cyber experts, as the company attempts to restart production.
The Conservatives had previously said they would back an emergency loan scheme, should the Government implement one.
Shadow business secretary Andrew Griffith also called for the Government to look into new cyber insurance measures.