UK government considers financial support for JLR suppliers following cyber attack – Tech Digest

Share

The UK government is exploring options to provide financial assistance to Jaguar Land Rover’s (JLR) suppliers following a recent cyber attack that forced the carmaker to halt production.

The attack, which began in late August, has shut down JLR’s IT networks and suspended manufacturing at its three UK factories in Solihull, Wolverhampton, and Halewood. Production is not expected to resume until at least October 1.

Fears are growing that smaller firms in JLR’s supply chain, many of which rely solely on the company’s business, could face bankruptcy without intervention. In response, ministers are considering unprecedented support measures, as this would be the first time a company has received government aid due to a cyber attack.

One idea being explored is for the government to purchase and stockpile car parts from suppliers to keep them afloat until JLR’s production lines are operational again. This approach, while logistically challenging, is seen as a way to prevent the collapse of firms that employ tens of thousands of workers.

Another option under consideration is offering government-backed loans to suppliers. This is the option supported by former West Midlands mayor Andy Street, who argues that protecting these companies is a sound financial move for the Exchequer.

The government has ruled out a Covid-style furlough scheme due to its high cost. As senior figures express concern over a pattern of cyber attacks on UK businesses, the National Cyber Security Centre and the National Crime Agency are assisting JLR in its investigation.

The Business and Trade Select Committee is also set to hear testimonies from affected businesses to better understand the crisis and inform the government’s next steps.

For latest tech stories go to TechDigest.tv