Committee publication · Correspondence · 12 November 2025
Letter to the Secretary of State relating to the loan guarantee through UK Export Finance to Jaguar Land Rover, 7 November 2025
From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls
Inquiry: UK economic security
Summary
Secretary of State Peter Kyle responds to the Business and Trade Committee's concerns about a £1.5 billion Export Development Guarantee loan facility provided to Jaguar Land Rover (JLR) via UK Export Finance. Kyle defends the decision as swift support to a critical exporter, clarifies that drawdown timing is JLR's commercial decision, confirms JLR requested the guarantee, and argues direct support to JLR was faster than alternatives like British Business Bank support to lower-tier suppliers.
Key findings
- JLR requested an Export Development Guarantee from UKEF; drawdown timing and amounts are entirely at JLR's discretion and treated as a commercial matter between JLR and banks.
- Government provided £1.5 billion guarantee to increase JLR's liquidity to maintain workforce and supplier payments during operational restoration.
- JLR identified as the optimal delivery route because the company understands its own supply chain better than UKEF, which lacks visibility of tier-2+ suppliers.
- Speed of deployment was prioritized: loan guarantee to JLR was fastest mechanism, compared to alternatives such as direct British Business Bank support to affected lower-tier suppliers.
- Government commits to monitoring supply-chain impact through ongoing work with JLR and industry bodies including the Society of Motor Manufacturers and Traders, but provides no specific mechanism for ensuring tier-2+ suppliers receive adequate support.
Tone
ProceduralTopics
Key actors
Peter Kyle, Secretary of State for Business & Trade, Liam Byrne, Chair of Business and Trade Committee, Jaguar Land Rover (JLR), UK Export Finance (UKEF), Society of Motor Manufacturers and Traders, British Business Bank
Notable line
“The pace at which UKEF support could help deploy £1.5 billion to bolster JLR's cash reserves was important to ensure JLR can continue to manage its business, including paying its workforce and its suppliers …”
Key Quotes
“… the Government acted swiftly and decisively in the national interest to support JLR who are one of the UK's largest exporters and a critical part of our automotive ecosystem.”
“The decision about – or timing of – any draw-down(s) under the loan will be wholly at JLR's discretion and the mechanics of drawdowns are a commercial matter between JLR and the banks.”
“JLR is in the best position to be able to identify and understand the needs of its supply chain and the company is therefore the best delivery route for providing finance to its suppliers.”
“Providing a guarantee for a commercial loan to JLR was the quickest route to increase the company's liquidity.”
Source · parliament.uk record ↗