Home » UK Backs JLR with £1.5 Billion Loan Guarantee

UK Backs JLR with £1.5 Billion Loan Guarantee

by TheReportingTimes

London, September 28: The UK government has pledged a £1.5 billion loan guarantee to Jaguar Land Rover (JLR) in response to a recent cyberattack that has forced a shutdown of its manufacturing operations. The intervention is aimed at protecting the company’s supply chain and preserving thousands of jobs across the British automotive sector.

JLR’s systems for tracking parts, vehicles, and sales were severely disrupted, halting production and creating widespread uncertainty among suppliers and workers. In stepping in, ministers hope to stabilize the firm and reassure the industry.

Business and industry leaders welcomed the move—but raised concerns over its timeliness and sufficiency. Some called for additional measures such as a cyber reinsurance scheme and temporary wage support for affected workers. Meanwhile, critics warned that delaying support could lead to irreversible damage in smaller supplier firms.

A government source stated that the guarantee will be backed by the Export Development Guarantee program, enabling commercial banks to extend credit under the implied safety net. Officials also noted that JLR has begun restoring IT systems and is preparing a phased restart of operations.

The decision underscores the urgency of addressing cyber risk in critical industries and signals that the government is willing to use its balance sheet to defend strategic manufacturing. “This is about safeguarding high-value jobs and supply chains,” one industry insider said.

At the same time, this episode adds pressure to strengthen national cyber resilience and regulation. The disruption at JLR is seen as a warning shot: if leading exporters remain vulnerable, Britain’s ambitions in manufacturing and automation may be threatened.

With inflation high and industrial growth under strain, the move also carries a political dimension. The government may now be judged not just by its vision, but by its capacity to intervene quickly when industry falters.

 

 

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