Committee publication · Correspondence · 2 October 2025

Letter to the Secretary of State relating to Government loan to Jaguar Land Rover and support for suppliers, 1 October 2025

From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls

Summary

The Business and Trade Committee chair welcomes the Government's £1.5 billion loan guarantee for Jaguar Land Rover but seeks detailed clarification on the mechanism, valuation, and supplier support strategy. The letter requests information on loan terms, bank selection, and assurances that cash-constrained supply chain companies—particularly SMEs—will benefit quickly from the intervention.

Key findings

Government announced £1.5 billion loan guarantee for JLR using Export Development Guarantee (EDG) mechanism for working capital and capital investment
Committee prioritises rapid production resumption and cashflow restoration throughout supply chain, especially to cash-constrained suppliers
Committee questions the rationale for guaranteeing JLR directly rather than designing a scheme to channel finance directly to at-risk supply chain companies
Committee seeks evidence of JLR's commitments to support suppliers and expected distribution across supply chain tiers, including lower-tier SMEs
Committee requests clarity on Tata Motors' additional financial or operational assistance and Government's metrics for measuring success in supplier stability and job retention

Tone

Procedural

Topics

public-financemanufacturingsupply-chainexport-controls

Key actors

Peter Kyle MP, Secretary of State for Business and Trade, Business and Trade Committee, Jaguar Land Rover, Tata Motors, Department for Business and Trade

Notable line

“Our chief concern is that JLR production resumes as quickly and safely as possible - and that cashflow is restored throughout the supply chain, but particularly to cash-constrained suppliers, as fast as possible.”

Key Quotes

“I welcome the Government's announcement of a £1.5 billion loan guarantee for Jaguar Land Rover (JLR), to help deliver urgently needed support to its supply chain.”
— Business and Trade Committee Chair · Opening position on the loan announcement

“The rationale for guaranteeing JLR directly rather than designing a scheme to channel finance to at-risk supply chain companies.”
— Business and Trade Committee Chair · Questioning the chosen mechanism

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Source · parliament.uk record ↗