Financial experts urge support for Jaguar Land Rover workers: "The government should launch a furlough scheme"
FINANCIAL experts are urging the government to support Jaguar Land Rover (JLR) workers with a furlough scheme after a cyber attack.
The supply chain employing and sustaining towards 180,000 jobs has ceased production following the breach.
JLR build more than 1,000 cars a day at its three factories in Solihull and Wolverhampton in West Midlands, and Halewood in Merseyside.
Up to £50million every week is expected to be lost by JLR but worse could be coming very soon for thousands of small businesses for whom JLR makes up their order book and monthly cashflow.
Mary Maguire, Managing Director at Derby-based Astute Recruitment Ltd, urged the government to step in.
She said: "Jobs and livelihoods are already in danger following the cyber attack on JLR. The government should launch a furlough scheme for the supply chain to maintain their workforce wagerolls until the supply chain businesses can resuscitate their cashflow.
"JLR staff, and their families should not be penalised for something totally out of their hands. Instead TATA should foot the bill from their past profits of billions. The government could set a structured pay back for the supply chain to repay the public purse within a 12 or 18 month timeframe. Let's save jobs, livelihoods and business, not kill yet more of the UKs manufacturing off."
Sam Kirk, Managing Director at Retford-based J-Flex Rubber Products, said it will have a huge knock-on effect for small businesses.
He added: "Whilst this cyber attack has understandably caused disruption across the supply chain, for many Small and Medium-sized Enterprises (SMEs) this lack of visibility is not a new challenge. For the past five years, smaller suppliers have had to navigate uncertainty over order volumes, lead times, and sudden changes in demand, often with limited communication from Original Equipment Manufacturers (OEMs).
"This attack has only highlighted an ongoing vulnerability that SMEs have long been managing, and for many, it feels like yet another slap in the face when they are already carrying disproportionate risk.
"Should the Government once again step in with financial support? Or should shareholders at Tata, itself a multi-billion-pound company, bear more of the cost? Either way the supply chain cannot be left to simply put up, shut up, and risk collapse, particularly when SMEs are already bruised from the crushing weight of carrying the economy."
Keith Budden, Managing Director at Liss-based Ensurety, said over 100,000 jobs are at risk.
He added: "This really should send a massive shockwave not just through industry but through government too that while many fret about potential fines from the Information Commissioner's Office (ICO) for a data breach, the real worry should be about financial consequences in terms of lost production, and also the long term reputational damage.
"With JLR now saying production will not restart until 1st October at the earliest, the knock on from this is huge. While one would hope that either Tata's shareholders or JLR's insurers would foot the bill, the chances are that as far as the supply chain is concerned, their advice will be ‘suck it up’.
"But the thought of over 100,000 people being laid off should be unthinkable - the government really does need to step in, a dose of investment today could prevent a long term drain on the economy."
Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial, said the government needed to learn from past mistakes.
He continued: “When it comes to business as large as JLR, there needs to be coordination with the government and relevant public bodies to defend the UK economy. Looking back at M&S, Co-op and Harrods the government didn’t respond for help quick enough, and it looks like it hasn’t learned its lessons.
"Of course, businesses need to take ownership of their IT protection but we live in a new world and unless the government is willing to see an impact on growth they need to play their part in the defence.”




