Business Secretary Peter Kyle is under growing pressure to support firms hit by the Jaguar Land Rover (JLR) shutdown, after the carmaker warned a cyber-attack would halt production until October. Conservative MPs, including former chief whip Sir Gavin Williamson, former chief whip Wendy Morton and former deputy foreign secretary Sir Andrew Mitchell, have written to Mr Kyle demanding help for firms that supply JLR with parts and services.
They said: “Without immediate action and focused support, the damage to the UK’s automotive sector and manufacturing base could be deep and irreversible.” The Indian-owned carmaker shut down its IT systems after what it called “a cyber incident” and said it hoped to resume operations by September 24, but has now warned that the closure will continue into October. It employs 36,000 people at sites in the West Midlands and Merseyside, but the firms most at risk are those in the supply chain, which provide 100,000 jobs. They include smaller manufacturing businesses with JLR as their only customer.
Mr Kyle has met JLR managers and insisted the Government “is doing everything we can to minimise the impact of this incident, as well as helping the sector thrive long into the future through our modern industrial strategy”.
But the Tory MPs, who represent seats across the Midlands, have accused the Government of failing to provide “any tangible action or support for the supply chain”. They said employers had contacted them calling for “urgent clarity” and asked Mr Kyle to work with banks to ensure firms could access loans, and to push insurer covering the UK automotive supply chain to process any claims without delay.
The letter, also signed by MPs Saqib Bhatti, Mike Wood and Neil-Shastri-Hurst, said: “In the long-term, if the supply chain fails the ramifications would be devastating for tens of thousands of people.”
Labour MPs have also written to Mr Kyle urging him to consider calls from trade union Unite for the Government to introduce a Covid-style furlough scheme for workers who lose their income as a result of the shutdown.
Chairman of the Business and Trade Select Committee Liam Byrne, another Midlands MP, said the issues at JLR are “a test for Government”.
The Labour MP for Birmingham Hodge Hill and Solihull North said: “This is no small glitch. This is a cyber-shockwave that has brought yet another national institution to a standstill.
“Jaguar Land Rover is not just a carmaker. It is the heart of our advanced manufacturing, the anchor of a vast supply chain, and a cornerstone of both our regional and national economy.”
He added: “This is not a problem for JLR alone. This is a test for Government. We will keep pressing ministers to track both the immediate and the wider economic fallout – and to be ready to act.”
