Government mulls financial support for JLR supply chain firms

The government is looking at ways to financially support the companies in Jaguar Land Rover’s (JLR) supply chain, the BBC understands.

JLR halted car production at the end of August after a cyber attack forced it to shut down its IT networks. Its factories remain suspended until next month at the earliest.

Fears are growing that some suppliers, in particular the smaller firms who solely rely on JLR’s business, could go bust without support.

One idea being explored is the government buying the component parts the suppliers build, to keep them in business until JLR’s production lines are up and running again.

A Covid-style furlough scheme is also among the options being considered, sources have told the BBC. This option would see the government subsidising workers wages or providing government-backed loans to suppliers.

However, ministers have ruled out a furlough scheme given its likely cost – and a desire to keep people working, rather than the opposite.

The Business and Trade Select Committee is due to meet on Thursday afternoon to hear testimonies from businesses in JLR’s supply chain.