“It shows a shocking lack of ambition or care for the manufacturing heartlands. People deserve a plan to save their livelihoods, not a shrug of the shoulders and directions to the Job Centre from Labour.”
Jaguar Land Rover (JLR) workers left facing layoffs in the wake of a crippling cyber attack have been told by the Labour Business Secretary to sign on for welfare rather than expect Government support.
Peter Kyle admitted on Tuesday that the Government would not provide a financial safety net for the hundreds of firms in JLR’s supply chain now left without orders.
Instead, he urged redundant staff to rely on Universal Credit, describing the benefits system as the “main safety net” for those losing their jobs.
Mr Kyle told ITV: “Highly distressed companies might well have to take radical action in order to preserve the company and make sure that it bounces back. The welfare department is there to support people who are out of the workforce.”
His remarks have provoked anger among unions, suppliers and MPs, who have been pressing ministers to step in with urgent support. They had called for measures similar to the pandemic-era furlough scheme or emergency loans to tide businesses over until JLR’s production restarts.
A former Conservative MP in the Midlands, where many JLR suppliers are based, called the Business Secretary’s position “ridiculous”.
“At a time when thousands of skilled jobs are hanging in the balance, the best the Business Secretary can offer is to tell workers to sign on. It shows a shocking lack of ambition or care for the manufacturing heartlands. People deserve a plan to save their livelihoods, not a shrug of the shoulders and directions to the Job centre from Labour.”
JLR, Britain’s largest carmaker, has warned that production will remain suspended until at least October 1, with insiders fearing stoppages could stretch well into November. The disruption threatens thousands of jobs across the Midlands and beyond, with smaller suppliers already beginning to shed staff.
Critics accused Mr Kyle of effectively washing his hands of the crisis. While acknowledging that Work and Pensions Secretary Pat McFadden was “aware” of the need to “step in in some areas”, he offered no commitment to protect jobs or businesses.
Despite the scale of the economic fallout, JLR contributes an estimated £18bn to the UK economy annually, the Labour Government has limited its response to behind-the-scenes talks with company executives and vague promises to “get JLR back on its feet”.
The cyber attack, claimed by a group styling itself Scattered Lapsus$ Hunters, has brought production lines to a standstill and left the Government scrambling to explain why its cyber security experts have yet to identify the perpetrators.
A JLR spokesman confirmed: “We have informed colleagues, suppliers and partners that we have extended the current pause in production until Wednesday October 1 2025, following the cyber incident. We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation.”
