On 28 September the Secretary of State for Business and Trade announced that the Government are supporting Jaguar Land Rover through a guarantee provided by UK Export Finance for a commercial loan.
JLR is a major exporter and employer, supporting around 34,000 UK jobs directly, and a further 120,000 in its supply chain, but over the summer it was the victim of a prolonged cyber-attack, causing it to suspend much of its business operation.
Ministers recognised that the risk to JLR’s supply chain was far reaching, and that it is in the national interest for UKEF to issue this guarantee. The loan, which will be repaid over five years, will help ensure that JLR has liquidity to maintain operations, as well as to direct to suppliers as appropriate. UKEF will receive a premium, ensuring that the Government are appropriately compensated for the risk taken, and to cover administrative costs.
Providing a guarantee for a commercial loan to JLR is an expedient route to relieve the pressure being experienced by the supply chain. JLR already has an established relationship with its various suppliers, with whom it will work in a constructive and informed manner as production restarts. The Government moved to protect thousands of jobs and potentially billions of pounds in export earnings.
Cyber-security of the UK is a key priority for this Government, and the Department for Science, Innovation and Technology and the National Cyber Security Centre have been taking significant action to help protect businesses against cyber-attacks. This includes providing businesses with the tools, advice and support to protect themselves from cyber-threats, including free training for boards and staff. We have also put in place:
The cyber governance code of practice, which shows boards and directors how to effectively manage the digital risks to their organisation.
The highly effective cyber essentials scheme to prevent common attacks, reducing the likelihood of a cyber insurance claim by 92%. The certification scheme includes automatic cyber liability insurance for any UK organisation who certifies their whole organisation and has less than £20 million annual turnover.
As the decision was made over recess, I am notifying Parliament at the earliest opportunity. Notification has been sent separately to the Chairs of the Public Accounts Committee and the Business and Trade Select Committee.
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