Jaguar Land Rover could have moved car production out of the UK and slashed jobs without a subsidy worth £380 million, according to government documents.
Government Warning
Labour Party government officials claimed JLR could have led an exodus out of the UK, reports the Guardian newspaper today (Tuesday, May 5). Officials at the Department for Business and Trade (DBT) sounded the warning back in December, ahead of Christmas.
Subsidy Details
The government has given a £380m grant to Tata Sons, JLR's owner, and its new business Agratas, in recent months. Agratas is building a battery “gigafactory” in Somerset in the south west of England to supply car giants.
Sounding the alarm amid a tough macroeconomic outlook including Donald Trump's tariffs, DBT officials warned Agratas could locate its European factory in Spain without the subsidy. It would have led to JLR moving production out of the UK, too, to save cash.
Document Excerpt
The document said: “DBT explained that, over time, this systemic disadvantage could lead JLR to relocate its vehicle production closer to the counterfactual battery plant in Spain, resulting in significant job losses at JLR’s UK vehicle production and its wider supply chain.”
JLR Response
A JLR spokesperson said: “JLR is committed to manufacturing in the UK. We did not suggest moving our vehicle production to Spain during discussions with government about the location of the gigafactory.”
Union Reaction
Des Quinn, a national officer for the Unite union, which represents JLR workers, said: “It’s good to see that the government were on the right side to support the UK car industry.”
Government Statement
A government spokesperson said: “We value JLR’s commitment to manufacturing in the UK. Our £380m subsidy to Agratas will increase UK domestic battery production and keep us at forefront of the transition to zero-emission vehicles.”
