Chancellor Rachel Reeves has been urged to protect tens of thousands of manufacturing jobs after a cyberattack halted production at carmaker Jaguar Land Rover (JLR). The firm, which sells luxury vehicles across the world, employs 36,000 people at sites in the West Midlands and Merseyside. But there is particular concern about the fate of businesses in the supply chain, which provide 100,000 jobs.
Conservative Shadow Minister Saqib Bhatti, whose Meriden and Solihull East constituency includes a JLR factory, has written to Ms Reeves asking her to intervene. He called on the Treasury to work with banks so that they introduce a short-term loan scheme, allowing suppliers to overcome immediate financial issues and avoid redundancies.
Mr Bhatti also asked the Government to pressure insurers that cover the UK automotive supply chain to process any claims without delay.
He told the Chancellor: “Reports have suggested that some firms are now unable to support their workers financially and lay-offs are underway.”
The MP added: “In the long-term, if the supply chain fails the ramifications would be devastating for tens of thousands of people.”
Mr Bhatti said the “unique and exceptional” situation is creating “a cash crunch for suppliers who won’t be able to sustain themselves indefinitely and are in desperate need of some certainty from the government.”
JLR has shut down its IT systems after what it calls “a cyber incident” and says it is “working around the clock” to restart production. Operations have stopped until at least September 24, with reports suggesting the shutdown could continue for longer.
The Indian-owned business has released few details of the incident. In recent cyberattacks on UK retailers Marks & Spencer and the Co-op, hackers demanded money.
JLR buys components from around 4,500 direct suppliers globally and is the main or only customer for many of these businesses.
Trade union Unite has also urged the Government to intervene and called for a furlough scheme for supply chain workers. It said its members were being laid off with reduced or zero pay, with some being advised to sign up for universal credit.
Unite general secretary Sharon Graham said: “Workers in the JLR supply chain must not be made to pay the price for the cyber attack.
“It is the government’s responsibility to protect jobs and industries that are a vital part of the economy. Ministers should take the lead from the Scottish government’s support package for Alexander Dennis staff and implement a similar scheme for workers in the JLR supply chain now.”
Minister for Industry Chris McDonald said: “Yesterday I met West Midlands Mayor Richard Parker to discuss the effect the shutdown at Jaguar Land Rover is having on the region, and we agreed to keep in close touch while the company works to get production up and running again.
“We know this is a worrying time for those affected, and although Jaguar Land Rover are taking the lead on support for their own supply chain, our cyber experts continue to support them to resolve the issue as quickly as possible.”