UK government considers rescue plan for suppliers to cyber-crippled Jaguar Land Rover

Britain must face reality of 'cyber vulnerabilities', experts tell The National

Jaguar Land Rover's plant in Halewood, Liverpool. JLR employs more than 30,000 people, with a supply chain involving around 200,000 workers. PA

The British government is considering a rescue plan for Jaguar Land Rover suppliers following the major cyber attack on the luxury carmaker, as experts warned The National that the UK must face up to “significant cyber vulnerabilities”.

JLR employs more than 30,000 people, with a supply chain involving around 200,000 workers, whose jobs are potentially at risk after the attack shut down the company at the end of August. Lost revenue is currently estimated at £1.7 billion.

The company has been forced to pause production until October 1 to tackle the impact of the shutdown, increasing the estimated lost revenue to more than £2 billion.

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With unions warning that JLR suppliers are facing collapse, one option being considered is for the government to buy parts used by the manufacturer to keep the suppliers trading until production restarts.

The government is also understood to be looking at backing loans for JLR suppliers, but it is likely to rule out a costly furlough scheme for workers, like the one used during the Covid-19 pandemic.

A government announcement is expected after MPs on the business committee meet the suppliers later on Thursday and relay their discussions to ministers.

JLR would normally build about 1,000 cars a day, so the shutdown has stopped 25,000 vehicles being produced this month. The company's cash reserves are under severe pressure after production was halted at three factories.

Empty shelves inside a Marks & Spencer shop after a cyber attack in April. PA

JLR is one of the highest-profile victims of cyber crime in the UK this year, after retailers Marks & Spencer and the Co-op were targeted. On Thursday, the Co-op said the cyber attack in April, which left 2,000 shops with empty shelves, had dented profits by £80 million.

“The UK does have significant cyber vulnerabilities and it is widely recognised that better cyber security and resilience is needed, particularly for critical infrastructure,” said Dr Joseph Devanny, of the Department of War Studies at King’s College London.

The attacks have led to comparisons with the victims of terrorism.

Dr Gareth Mott, a cyber expert at the Rusi think tank, said the state would take a front foot to ensure security if a similar company was the victim to violence, but “the culture isn't there” for cybercrime or ransomware.

He suggested that society’s “period of numbness” over cyber breaches was ending after the “bare shelves” at M&S and “people getting temporarily laid off at JLR”.