The UK Government has directed UK Export Finance (UKEF) to provide a guarantee for a commercial loan of up to £1.5 billion to Jaguar Land Rover (JLR), despite the transaction falling outside the export credit agency’s standard underwriting criteria.
Secretary of State for Business and Trade Peter Kyle issued formal instructions to UKEF Chief Executive Tim Reid on 26 September 2025, authorising the support to help JLR manage the impact of a recent cyber-attack on its export business and wider operations.
In correspondence dated 25 September, Reid had outlined his concerns as UKEF’s Accounting Officer, noting that while the overall risk relating to JLR was acceptable and adequately compensated through premiums, the quantum of exposure to a single entity was high relative to UKEF’s portfolio size. Combined with existing exposure to JLR and occurring during a period of significant uncertainty for the firm, the support would breach UKEF’s Exposure Management Framework agreed with HM Treasury.
The framework is designed to allow UKEF to support UK exporters while managing potential risks to the Exchequer from individual transactions and overall portfolio exposure. Going outside these parameters requires ministerial direction.
Secretary of State Kyle justified the intervention on national interest grounds, citing JLR’s status as one of the UK’s largest exporters and a major employer with 34,000 people working directly in its UK operations. The automotive manufacturer operates the largest supply chain in the sector, predominantly comprising small and medium-sized enterprises, supporting approximately 120,000 jobs.
“For many of these companies, their business with JLR is critical to their survival, and I am therefore particularly concerned about the supply chain impacts of the difficulties the firm is currently facing as a result of the cyber attack,” Kyle stated in his letter.
The Secretary of State confirmed he had secured in-principle consent from the Chancellor of the Exchequer for the transaction. UKEF will now undertake full due diligence and seek final confirmation of consent from HM Treasury once support terms are agreed.
The working capital support will be provided through UKEF’s Export Development Guarantee product for up to five years. JLR is identified in the government’s Modern Industrial Strategy as operating in a growth sector, representing a leading global brand.
In accordance with Managing Public Money guidelines, the Comptroller and Auditor General and the Treasury Officer of Accounts have been notified of the direction. The Secretary of State will inform Parliament of the instruction in due course, with the Chairs of the Public Accounts Committee and the Business and Trade Select Committee being notified while Parliament is not sitting.