Keir Starmer must not abandon Britain's auto workers

The month of September has been a miserable one for the automotive sector.

From the moment Jaguar Land Rover’s production was halted by a debilitating cyber attack, entire supply chains have been thrust into a state of turmoil. With many of the 104,000 UK jobs reliant upon JLR’s business now hanging in the balance, the situation grows increasingly precarious by the day.

Without a doubt, JLR has suffered the most through this ordeal – the disruptions are not only costing the company upwards of £50m a week, but they have also come at a time when production typically reaches an all-year high. Just as is the case with M&S after its crippling cyber incident during Easter, it will take years to recoup the losses.

But while JLR’s woes have understandably grabbed the media headlines, there is a malaise of similarly devastating proportions sweeping the nation – to the businesses and workers whose livelihoods now hang by a thread.

For the more than 100 suppliers directly embedded within JLR’s mammoth supply chain – many of them small and medium-sized enterprises based in the West Midlands – production has been ground to an absolute halt. But these companies do not have the financial resilience of a multinational manufacturing powerhouse like JLR. There is no parent company to swoop in and steady the ship. They have been left to reckon with the harsh realities of business – when there is no revenue, you must either cut your workforce or close up shop.

To make matters worse, each of these suppliers plays a critical role within its own respective supply chain. When a manufacturer stops production, its suppliers and subcontractors also suffer. The collapse of one link in this chain risks pulling down dozens more.

For all parties involved, this cyber attack is nothing short of an existential threat, and without urgent government support, we face a wave of bankruptcies, mass redundancies and permanent damage to one of the UK’s most crucial industries.

This is not the fault of JLR: they are most certainly feeling the brunt of the fallout. It is the government – an institution built to temper the volatilities and disruptions of the free market system – that is to blame for the job losses that have already occurred. For almost three weeks, they have sat on their hands and watched while supply chains flatline and businesses slump en masse, and yet there is no sign of urgent assistance in sight.

The government simply cannot afford to stand idly by. Many workers are waiting anxiously to hear if they will still have a job tomorrow, with others being advised to apply for Universal Credit. JLR is expected to resume operations later this month, but the disruption is forecast to continue into November. Many of these businesses cannot afford to wait another week, let alone a month. They see the storm that is brewing, so why does the Chancellor not see it too?

We have been here before. In moments of crisis, governments have stepped in to protect both workers and industries of national or regional importance. The government found the money to support steelworkers in Scunthorpe when their industry faced collapse. Just this week, it backed a furlough scheme for support staff at a bus manufacturer in Scotland. If these jobs were worth saving – and they were – what makes the livelihoods of JLR’s supply chain workers any less valuable?

This government needs to demonstrate that when livelihoods and regional economies are at risk, it is willing to deploy the necessary resources to save jobs and bring businesses back from the brink of collapse. In this moment, with the stakes so high, nothing short of a targeted furlough package will do – it is the only way to support JLR’s supply chain and protect working families while JLR navigates its return to full capacity.

The West Midlands is the beating heart of British manufacturing: leaving JLR’s support network to fall away would be an act of unforgivable negligence. Words of acknowledgement and assurance are simply not enough. The government must act – and it must act now.

____________________

Ayoub Khan MP is the Independent Member of Parliament for Birmingham Perry Barr, serving his constituency since July 2024.

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email opinion@lbc.co.uk