UNIONS welcomed the government vow to underwrite a £1.5 billion loan guarantee to Jaguar Land Rover today as it continues to face a shutdown following a mass cyber attack.

The car-maker has been forced to suspend production at its British factories following the hack on August 31. 

Its suppliers have been left in limbo as the shutdown is expected to last until at least Wednesday.

The government will give its backing to the loan through the Export Development Guarantee, a financial support mechanism aimed at helping British companies selling their goods overseas. It is to be paid back over five years.

Unite general secretary Sharon Graham said: “This is an important first step and demonstrates that the government has listened to the concerns raised in meetings with Unite over recent days.

“This is exactly what the government should be doing, taking action to protect jobs.

“The money provided must now be used to ensure job guarantees and to also protect skills and pay in JLR and its supply chain.”

GMB regional secretary Martin Allen said: “Jaguar Land Rover is a British institution; huge parts of the economy across the UK and here in the Midlands are tied into its success.

“It is a welcome step that government has intervened in this way, to support the company as well as the tens of thousands of workers across its supply chain.

“From day one GMB have been clear that this moment called for urgent and considered action; that is exactly what we have seen from government.

“The Midlands is at the heart of British manufacturing, and we cannot afford to leave its future to chance.”