Business leaders have warned that Labour’s added taxes, regulatory burdens, and net zero agenda are contributing to job losses across industries.
Jaguar Land Rover (JLR) has announced plans to cut 500 jobs in the UK, a move that has been described as a “personal embarrassment” for Prime Minister Keir Starmer, who previously vowed to safeguard jobs at the carmaker’s Solihull plant.
The redundancies will be offered on a voluntary basis and affect management-level positions, according to the company. JLR, owned by Indian conglomerate Tata Motors, said the move is “part of normal business practice.”
The announcement comes amid a sharp 15.1% drop in retail sales during the second quarter and continued uncertainty over trade relations with the United States. The company also faces rising operational costs, which critics have linked to the Labour Government’s economic policies.
Speaking on The Great British PAC X Space on Wednesday night, former Conservative MP Andrew Bridgen claimed he had heard of “talks of Jaguar Land Rover moving manufacturing to India,” citing concerns over rising business costs in Britain.
“This is a huge personal embarrassment for Keir Starmer,” said Andrew Griffith, the Shadow Business Secretary. “Two months ago, the Prime Minister looked workers at JLR in the eye and promised them he would protect their jobs – now 500 are to go.”
In May, Starmer visited the Solihull factory, where he announced a trade deal with then-US President Donald Trump that reduced car tariffs and claimed credit for job protection at JLR. “I promised workers at Jaguar Land Rover that I would protect their jobs. I kept that promise,” he said at the time.
However, JLR’s operations remain under strain. The company recently suspended Jaguar sales to the US market after a spike in tariffs, which have since been reduced from 25% to 10% for UK-made vehicles. Notably, some of JLR’s production is based in Slovakia, limiting the impact of the reduced tariffs.
JLR has also paused production of most Jaguar models as it prepares to relaunch the brand as fully electric. The overhaul, unveiled last year, included a new logo and a controversial pink concept car that drew criticism from public figures including Reform UK leader Nigel Farage, who labelled it “woke.”
Despite posting £1.6 billion in profits last year, the carmaker has struggled with falling Jaguar sales and supply chain issues. It currently employs around 35,000 people in the UK.
A spokesperson for JLR said: “As part of normal business practice, we regularly offer eligible employees the opportunity to leave JLR through limited voluntary redundancy programmes.”
The job cuts come against the backdrop of broader economic challenges. Unemployment in the UK has risen to a four-year high of 4.7%, following the Labour Government’s controversial £25 billion National Insurance hike. Business leaders have warned that added taxes, regulatory burdens, and the Government’s net zero agenda are contributing to job losses across industries.
