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Jaguar Land Rover: Redundancies
09 September 2026
Lead MP
Blair McDougall
Debate Type
Ministerial Statement
Tags
EconomyEmploymentTransportClimateBrexitForeign AffairsEnergyBusiness & Trade
Other Contributors: 26
At a Glance
Blair McDougall raised concerns about jaguar land rover: redundancies in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
EconomyEmploymentTransportClimateBrexitForeign AffairsEnergyBusiness & Trade
Government Statement
The Minister announced the Government's support for Jaguar Land Rover (JLR) and the wider automotive sector in the face of recent job losses and challenges. JLR plans to consult on approximately 4,000 redundancies as part of a £1.7 billion cost-saving effort. The Government is working with the company and unions to mitigate the impact on workers and local skills. The Minister highlighted the Government's £1.5 billion loan guarantee to JLR after a significant cyber-attack, demonstrating its commitment to defending British industry. The Minister also discussed global market conditions, including tariffs, high energy costs, and the transition to electric vehicles, which are impacting JLR and other automotive manufacturers. The Government's DRIVE35 programme, investing over £4 billion, aims to support vehicle electrification and battery production. The British industrial competitiveness scheme will save manufacturers up to 25% on electricity bills. Trade deals, such as the economic prosperity deal with the US and the landmark agreement with India, aim to support UK car manufacturers. The Minister also mentioned the zero emission vehicle mandate and its review, which is set to close on 23 October. He emphasised JLR's importance to the UK automotive sector and the Government's commitment to support the industry's transition to a sustainable future.
John Mann
Lab
Bassetlaw
Question
The MP questioned the effectiveness of the rapid response service in supporting those affected by JLR's redundancies. He also inquired about the status of the £500,000 support package for JLR workers taking voluntary redundancy, and whether the Government would provide additional financial assistance for those in need.
Minister reply
The Minister responded that the rapid response service is ready to support anyone affected by JLR's redundancies, providing support and advice on finding new work and training. He confirmed that the £500,000 support package for JLR workers taking voluntary redundancy was confirmed by Mayor Richard Parker and is in place. The Minister emphasised the Government's commitment to supporting those affected and ensuring maximum clarity and support during the consultation period.
Diana Johnson
Lab
Kingston upon Hull North
Question
The MP raised concerns about the impact of JLR's redundancies on the supply chain and businesses in the region, asking for details on how the Government plans to support these businesses and protect jobs.
Minister reply
The Minister acknowledged the impact on the supply chain and businesses and highlighted the Government's efforts to support the sector, including investment in Agratas’s gigafactory and DRIVE35 programme. He emphasised the importance of the automotive sector to the UK economy and the Government's commitment to supporting the industry through these challenging times.
Steve Brine
Con
Winchester
Question
The MP inquired about the Government's plans to address the energy cost challenge faced by JLR and other manufacturers, and whether the British industrial competitiveness scheme would provide sufficient relief.
Minister reply
The Minister explained that the British industrial competitiveness scheme will save manufacturers up to 25% on electricity bills, including JLR. He emphasised that the scheme will provide significant relief to manufacturers and help them remain competitive.
Helen Hayes
Lab
Dulwich and West Norwood
Question
The MP questioned the Government's response to the impact of JLR's redundancies on communities and asked for details on how the Government plans to support affected communities.
Minister reply
The Minister acknowledged the impact on communities and emphasised the Government's commitment to supporting affected communities through the rapid response service and other initiatives. He highlighted the importance of the automotive sector to the UK economy and the Government's commitment to supporting the industry and communities through these challenging times.
Julia Dockerill
Con
Hornchurch and Upminster
Question
The MP questioned the government's response to the headwinds facing Jaguar Land Rover, including the ZEV mandate, energy costs, and trade barriers. She also criticised the government's approach to addressing the crisis and called for hard choices on tax, regulation, and energy. She questioned the government's actions on trade deals and its ability to protect British industry from unfair competition, particularly from China.
Minister reply
The minister responded by acknowledging the impact of job losses on workers and families. He highlighted the British Industrial Competitiveness Scheme as a significant measure to help automotive manufacturers and their supply chains. He also addressed the ZEV mandate, trade deals with the US and Europe, and the need to be careful about tariffs on Chinese imports. He emphasised the government's commitment to supporting Jaguar Land Rover in innovation and supply chain resilience.
Liam Byrne
Lab
Birmingham, Hodge Hill
Question
The MP commended the mayor of the West Midlands for his quick action and asked the minister to pledge support for further measures to help workers get back to work. He also questioned the minister's openness to implementing tariffs on China and addressing energy costs.
Minister reply
The minister thanked the MP for his questions and highlighted the government's close collaboration with the mayor of the West Midlands. He reiterated the government's commitment to the British Industrial Competitiveness Scheme and the need to be careful about tariffs on Chinese imports to protect export-focused industries. He also emphasised the government's focus on supporting Jaguar Land Rover in innovation and supply chain resilience.
Sarah Olney
Liberal Democrats
Question
Asked about the Chancellor's growth mission and its impact on manufacturing jobs, particularly in the west midlands, and requested bold action to address economic challenges and protect specialised skills in the manufacturing sector.
Minister reply
Acknowledged the importance of the £1.5 billion guarantee for JLR and the ongoing engagement with European member states on rules-of-origin issues and the 'made in Europe' agenda to support the automotive industry.
Maria Eagle
Lab
Garston and Halewood
Question
Asked about steps being taken to mitigate the impact of the job cuts on the supply chain and boost resilience in the automotive sector.
Minister reply
Reassured constituents that productive staff would not be impacted and highlighted the substantial investment into the supply chain through initiatives like Agratas and DRIVE35.
Saqib Bhatti
Lab
Question
Highlighted the issue of high levels of red tape and national insurance rises affecting the competitiveness of the automotive sector.
Minister reply
Acknowledged the impact of the Employment Rights Act 2025 and national insurance rises, and noted the Government's efforts to lower costs on the industry, including measures to make energy costs more competitive.
Birmingham Erdington
Question
Asked for assurances regarding the future of the Jaguar Land Rover Castle Bromwich site and the protection of jobs in the future.
Minister reply
Emphasised the importance of investing in JLR's future productive capacity and highlighted the conversation with the company about protecting high-value jobs directly in JLR and in the wider supply chain.
Zarah Sultana
Lab
Question
Demanded urgent answers and exploration of alternatives to job losses, questioned the lack of transparency in JLR's plans and the use of public money.
Minister reply
Discussed the ongoing conversation with JLR on the phasing of changes and the roll-out of new models, and the commitment to securing jobs and protecting the supply chain.
Preet Kaur Gill
Lab
Birmingham, Edgbaston
Question
Asked about access to finance for west midlands firms to diversify and protect skilled jobs in the automotive industry.
Minister reply
Highlighted the DRIVE35 programme and the £50 million devolved to the mayor in the west midlands to support supply-chain resiliences and protect jobs.
David Reed
Con
Question
Asked for information on the attribution of the JLR hack and the consequences for the perpetrator.
Minister reply
Referred to the attribution matter as a serious matter for the Minister for Security and the Home Secretary, and emphasised the importance of the £1.5 billion guarantee in reassuring the market and protecting jobs.
Redditch
Question
Asked for assurances that the Government would continue to support the automotive industry to protect jobs and prevent further job losses.
Minister reply
Reassured the MP that the Government would continue to support JLR's strategic investments and ensure the industry continues to flourish for a long time to come.
Question
This announcement is a devastating blow for my constituents who are employed by JLR, and they will be incredibly worried for their future and their families, so what discussions have the Government had with JLR and the affected authorities—not just the West Midlands combined authority, because JLR is present in Warwickshire as well—regarding support for employees at risk of redundancy, and what measures will the Government put in place to help affected workers secure alternative employment?
Minister reply
We are working very closely on behalf of the hon. Lady’s constituents, who I know will be troubled at the moment, and with the local mayors and local authorities. Most of the conversations and the asks made of us are about ensuring that the wider automotive supply chain and advanced manufacturing sector in the region continues to thrive, so that those highly skilled workers—they come from a company with an incredible pedigree—can more easily move into other jobs in the sector, and the skills can be maintained in the hon. Lady’s part of the world.
Mary Creagh
Lab
Wakefield
Question
The actions taken by this Government stand in stark contrast to the actions of previous Conservative Governments, who were happy to watch the closure of the Massey Ferguson factory, the Alvis tank factory and Peugeot in Coventry in the ’80s, which led to 20% unemployment in the city where I grew up. After those closures, we saw the financial services industry target workers, some of whom were in defined benefit pension schemes and considering voluntary redundancy, and persuade them to transfer to a less beneficial pension. After firms had gone bust, people realised that they had been mis-sold their pension. Will the Minister take every possible step to protect the pension prosperity of those who will face voluntary or compulsory redundancy at the global headquarters of JLR at Whitley in Coventry?
Minister reply
My hon. Friend raises a really important point—one that I confess has not come across my desk yet. After this statement, I will make sure that we are raising this point with the relevant regulators, and will perhaps talk to friends in the Treasury about it, because it would be awful if really skilled workers who have a redundancy payment that they have earned through years of hard work have it snatched away by disreputable finance companies.
Question
Learning of these potential job losses was deeply concerning for me as a Member of Parliament for Birmingham, because job losses impact not just individuals and their immediate family, but local economies. The regional mayor has set aside half a million pounds, but that is not new money; it is money that he had for other projects. Will the Minister specifically state what funding this Government will provide to the local mayor and the local councils—and I am not talking about the £1.5 billion loan?
Minister reply
As I said to other hon. Members, throughout the conversations that we have been having with people in the region, including the mayor and the company, the ask has been that we stand behind the wider sector and supply chain and make sure that things are available in the future. The hon. Gentleman mentioned skills; he will be aware that the changes that we have made—such as the move to shorter, more flexible apprenticeships—are very focused on the automotive industry, so we are already putting significant amounts of funding into advanced manufacturing in the hon. Gentleman’s part of the world and will continue to do so. We stand ready to work with people in the region to maintain skills and manufacturing there, whatever it takes.
Question
My next-door neighbour works at JLR, and people in my constituency have worked there their whole life. They and others in the wider manufacturing supply chain will be rightly concerned about their future, and I share their concern. I welcome the package of measures put in place by Labour Mayor Richard Parker, but what more will the Minister do to support motor manufacturing in the west midlands and protect our industrial future?
Minister reply
My hon. Friend makes an incredibly important point, as she always does, on behalf of her constituents who work in automotive. Many of those workers, because they are very highly skilled and because Jaguar Land Rover is such a prestigious organisation to have worked in, will find themselves in work again very quickly, but that is almost not the point. This will be like mourning for them, because they will be leaving a company with which they are deeply connected emotionally. We are investing £4 billion in the automotive industry—it is the biggest investment in the automotive sector in post-war Britain, as I said earlier—precisely to ensure that the high-quality jobs that her constituents rely on, not just in the big automotive primes but all across the supply chain, are there for her constituents for generations to come. I will continue to work with her on that.
Question
Jaguar Land Rover is Britain’s largest car manufacturer, so it is deeply concerning for workers and the whole supply chain, including Agratas in my constituency, to learn of 4,000 job losses there. JLR is at a competitive disadvantage, given the excessive energy costs in Britain. Does the Minister agree that the key to protecting Britain’s manufacturing is to provide lower electricity costs to all businesses in Britain?
Minister reply
I would absolutely agree with the hon. Gentleman, which is precisely why we are taking action, not just through the British industrial competitiveness scheme, but through the supercharger. This is an incredibly important issue, not only for automotive and advanced manufacturing, but for the entire economy, given the impact on our growth, and that is precisely why we are acting on it. In addition to tackling energy costs, investing in innovation is incredibly important, because that is what we will compete on in this global market—not on low costs, but on better ideas and products.
Question
Four thousand job losses will have a massive impact on the west midlands, and particularly on Birmingham Selly Oak, where hundreds of jobs will be affected and people’s economic futures will be cut short. I welcome Richard Parker’s half a million pounds of support, but I worry that JLR’s “global market conditions” boils down to three key things: Chinese domination of the electrical vehicle market, not just in the UK, but across the entirety of Europe; tariffs from America; and perhaps the first salvo in what we would call advanced or artificial intelligence taking over administrative and managerial roles in major manufacturing companies across the entirety of Europe. What are the Government doing to prepare themselves for AI replacing a lot of these jobs, and what are we doing to help?
Minister reply
My hon. Friend nails so many of the challenges. He mentions Chinese exports. The flip side of that is our manufacturers’ ability to access the Chinese market, and particularly the incredible difficulty of competing in China against highly subsidised Chinese-made cars. On technology, part of the reason why we are investing so heavily in, for example, software-defined vehicles and autonomous vehicles is that we want to be ahead of the curve. We want to be the country that leads on this. Just a few days ago, we saw the beginning of autonomous vehicles on the road in this city. I was in the midlands a few days ago with Aurrigo, an incredible company making autonomous vehicles that take freight and luggage around airports. We have so many companies who have the ability to turn what he rightly identifies as a potential threat into a competitive advantage for us in the world, and that is why we are investing so heavily in this.
Question
This House needs to wake up urgently, because the truth is that these 4,000 JLR jobs are being sacrificed on the altar of net stupid zero, which was introduced in 2019, since when JLR production has collapsed from almost 400,000 vehicles to under 200,000. Energy prices have doubled, and the previous Conservative Government introduced the ridiculous zero emission vehicle mandate. Meanwhile, Chinese imports have increased from a few thousand vehicles to almost 300,000—some 15% of the market. The whole of the UK market will be destroyed in the next five to seven years unless this Government take urgent action. Will the Government do the right thing, scrap the ZEV mandate, and do what the US has done: introduce 100% tariffs on all Chinese EV imports?
Minister reply
I welcome the hon. Gentleman’s question. He knows that we are reviewing the ZEV mandate. The destination of electric remains, but the question of how quickly we go there is under review. He stands there as the supposed defender of Jaguar Land Rover, but I simply remind him that when we stepped in with £1.5 billion to protect Jaguar Land Rover, his party leader said: ‘I predict Jaguar will now go bust. And you know what? They deserve to’. The hon. Gentleman should apologise for that.
Question
Thank you, Madam Deputy Speaker. [Interruption.]
Minister reply
I am glad that my hon. Friend has had that reassurance for her constituents, but she will know that they will be affected by this, in the sense that they feel that they are part of the JLR family; it has such a strong identity as a company. As I said, we are working carefully with representatives of the industry on the issue of Chinese imports. It is worth saying that the industry is nervous about the issue. It is worried about the impact of the increased number of Chinese EVs coming into our market, but it also wants to be able to access the Chinese market, and does not want to get into a retaliatory situation, so we do not rule anything out, but we are being very careful as we work with the industry on that issue.
Question
I thank the Minister for his statement, and for keeping Members of this House informed on the situation in JLR. Although we have had reassurances that production jobs will not be affected, when the cyber-attack happened, a lot of the supply chain companies and their employees were adversely affected. Can the Minister give some reassurance that they will not be affected by this latest round of redundancies? Can he also please give the reassurance that he will continue to work with the trade unions and other partners?
Minister reply
I can certainly give that reassurance. The Prime Minister, the Secretary of State and I have been in contact with the unions in recent days about this issue. On a day when so many people are worried about job losses, it is difficult to strike a positive note, but in everything that JLR has been saying, including about protecting blue-collar production workers—it recognises that it does not want to eat into its future as a company—is a reassurance that the investment pipeline will continue. Beyond this difficult period, the company and the supply chain will have a really bright future in this country.
Question
The Minister will appreciate the concern that announcements of redundancies at major manufacturers such as JLR will create for employees, families and businesses across not just those manufacturers but the wider supply chain and industry. In my constituency, Bentley Motors has invested hundreds of millions of pounds over the past decade, but what more can the Government do to support the UK automotive sector? Will the Minister join me in welcoming the forthcoming launch of Bentley’s first electric vehicle, the Torcal, on 23 September?
Minister reply
When my hon. Friend mentioned the Torcal, I thought he might have been referring to my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton). The other day, I was with Bentley representatives at a roundtable at the HORIBA MIRA testing facility in the midlands to talk about exactly those issues. We are working closely with the company on plans for the next stage of its activity, particularly with regard to making the most of the Indian trade deal. I warmly congratulate Bentley on the Torcal. How high-end that vehicle is—1,000 layers of walnut veneer within the interior! This is a seriously impressive product from a company with an incredible heritage.
Question
The automotive sector is hugely important to Banbury, with numerous companies supporting hundreds of jobs, including in the supply chain for Jaguar Land Rover. People there will be nervous about the news over recent days. Can the Minister provide them and me with reassurance about the support that the Government will provide the company and others in the supply chain?
Minister reply
As I said a moment ago, yes, the focus is rightly on Jaguar Land Rover and the individual workers, but we know that other people will be worried, particularly given the recent memory of the impact of the cyber-attack on supply chains. We are absolutely committed to investing in those supply chains to learn the lessons of that attack and invest in their resilience. That is why we are putting particular pots of money into those areas—generally, and through DRIVE35 and the CAM pathfinders—to ensure that we are investing in supply chain resilience. That is important for automotive, defence and all sorts of other areas of advanced manufacturing.
Shadow Comment
Julia Dockerill
Shadow Comment
The shadow criticised the Government's response to the job losses at JLR, arguing that the situation demonstrates de-industrialisation. She highlighted the challenges facing JLR, including a cyber-attack and global market conditions, and questioned the Government's actions to make the UK more competitive. The shadow mentioned the ZEV mandate and the need for urgent choices on tax, regulation, and energy to address the competitive disadvantage faced by British manufacturers. She criticised the Government's industrial energy scheme and called for a cheaper power plan involving hard-nosed choices, such as repealing the Climate Change Act and investing in nuclear power. The shadow also raised concerns about the impact of UK-EU relations and foreign policy on trade deals and tariffs, and questioned the Government's ability to support JLR and other businesses in manufacturing competitively in the UK.
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