Urgent Government Action Needed On Jaguar Land Rover Crisis, Labour MPs Say
5 min read
Labour MPs are urging the government to deliver a comprehensive package to protect manufacturing jobs affected by the cyberattack at Jaguar Land Rover (JLR), with one saying business secretary Peter Kyle needs to "pull his finger out."
Jaguar Land Rover, Britain’s largest car manufacturer, has extended the suspension of its global operations, with the shutdown set to continue until at least 1 October, following its initial closure on 31 August.
More than 33,000 people work directly for JLR in the UK, with an estimated 200,000 employed by companies linked to its supply chain. The cyberattack is estimated to cost JLR tens of millions of pounds a day in lost revenue.
Kyle visited the West Midlands on Tuesday for the first time since the incident to meet company bosses. The automotive company works on a just-in-time basis with limited storage capacity, so it has had little choice but to halt its operations.
Speaking to ITV News, Kyle said JLR was a “profitable company” and he believed it was doing what it can to protect affected businesses.
“Our first priority as a government has been to assist JLR to get back on its feet in any way we can. We have teams that are deeply embedded. I've also, as in my department, since the very beginning been in touch with the supply chain,” he said.
Maria Eagle, MP for Liverpool Garston, told PoliticsHome companies were already getting rid of staff due to cash flow issues. The former minister said: “I know from the supply chain in my constituency that has contacted me there's certainly financial difficulty looming in a few weeks. Companies are already laying a few people off.”
Preet Kaur Gill, MP for Birmingham Edgbaston, told PoliticsHome: “My brother in law works there, lots of people have family members there and they are worried because they just don't know what's going to happen. We do need a sense of certainty so that business can plan.”
“We’re pushing for more transparency and openness for JLR in terms of what it actually does mean for production and the wider workforce,” she added.
MPs within the West Midlands and Merseyside – where JLR plants are located in England – are urging the government to push for Covid-style financial support. In an online meeting on Tuesday, MPs from the regions pushed Peter Kyle to take further action.
The MPs who are key pushing the government are Antonia Bance, Maria Eagle and Business Committee chair Liam Byrne. Giving an indication of the scale of the issue, Scottish and Welsh Labour MPs were present at the meeting, alongside those in the West Midlands and Merseyside.
Bance, Labour MP for Tipton and Wednesbury, urged the government to act quickly to save manufacturing which is the backbone of many Labour constituencies. “Cash flow is really difficult for all [companies] affected, we think ministers will have to step in with a business interruption loan scheme to protect jobs,” she told PoliticsHome.
It has been reported that one of the options being considered by the government is to purchase parts made by suppliers which the government would then sell back to JLR when it resumes production.
“I can see the attraction of something like that, in that it solves the issue of having to lay people off, it solves the issue of people losing their skills over a period of time and quality declining, and it makes things ready for parts that can then be used for manufacturing once JLR is back up and running. I know they're wanting to be very helpful,” said Eagle.
She added: “The government wants to make sure JLR bear their own share of the burden, after all they are a private business - a very profitable one - they have an obligation too as it is their supply chain.”
MPs on the Left of the party are calling for furlough measures to protect employees who cannot work due to the cyber attacks.
Lee Baron, Labour MP for Corby and East Northamptonshire, and a former trade unionist, told PoliticsHome: “The number one priority is to protect the supply chain. Preferably the government can bring in a furlough scheme. The issue is becoming more pressing, as the situation is not sustainable at the moment.”
Kim Johnson, MP for Liverpool Riverside, said: “Something serious needs to happen. Peter Kyle needs to pull his finger out.”
“During Covid there was furlough and all of those kinds of things that were put in place quite easily to support people who were going to be significantly impacted. Peter Kyle and his team need to think very seriously about what they need to do immediately to ensure there isn't serious economic damage,” she added.
Although Chancellor Rachel Reeves told ITV News of the threat posed by Russian cyber terrorists to the online systems of British institutions, there is no evidence that Russia was behind the assault on JLR.
It’s not clear at this stage how much longer the shutdown will last, adding to the uncertainty. “I will eat my hat if it is not months,” one MP said, adding: “I am not sure when this is going to end. We are three weeks in and they are nowhere near ending this.”
JLR have been contacted for comment.
