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JLR suppliers with ‘days of cash’ left

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Sarah JulianBBC Radio WM and

Eleanor LawsonWest Midlands

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Some businesses in the Jaguar Land Rover (JLR) supply chain have just seven to 10 days of money left, an MP has told the BBC.

Ten companies within the supply chain voiced their concerns about their businesses, in the wake of the cyber attack at JLR, at a meeting with the government’s Business and Trade Committee on Thursday.

Labour MP for Tamworth Sarah Edwards, who is a member of the committee, said some of the companies had not been paid by JLR since the end of August.

“They’re very worried, they are concerned,” Ms Edwards said. “It’s imperative suppliers are paid very very quickly.”

JLR, which has plants in Solihull, Wolverhampton and Merseyside, employs about 30,000 people directly, with an additional 100,000 in the supply chain.

Ms Edwards said the 10 companies in attendance at Thursday’s meeting covered a “cross section” of first-line direct suppliers, covering the “whole eco-system” of the supply chain.

She expressed particular concerns about the smaller suppliers and their cashflow concerns.

“It’s very worrying and that’s because we’re nearly a month into this – some of those suppliers had not been paid,” she said.

“We heard from one supplier who had still not received payment from JLR since 29 August, so it’s really good to hear that the [JLR] invoicing system is coming back online.”

JLR said on Thursday that it had begun a “phased restart” of its operations with parts of its IT system back up and running.

imageLabour MP Sarah Edwards, a woman with long light brown hair, wearing a black top. She is in a television studio.

Ms Edwards said some of the suggestions from the businesses were how to keep money within the supply chain and how the government might be able to support that.

“The feeling was [the need to] retain the work force and skills and having the immediate cash flow to keep these places open,” she said.

“We heard from one smaller supplier who’s already had to sell machinery, sell one of their trucks and go from two buildings down to one.

“Some people are at home already, they do not know whether they’ll be returning to work and when.”

The MP added that JLR needed “to be much clearer on the timeframe” for the return to production, as suppliers were unable to plan, meaning “they’re at a much higher risk of not being able to weather this.”

She said that some of the businesses thought that JLR “could have done more to communicate with them” and wanted clarity on the situation.

One idea the government is exploring is for it to buy the component parts built by the suppliers to keep them in business until JLR’s production lines are up and running, and then sell on those parts to JLR.

Ms Edwards said the businesses were pleased to hear it was an option being discussed but believed there would be “logistical challenges”.

“This is a ‘just in time’ operation, so storing those parts, making sure they’re not damaged, making sure that quality control is intact would be difficult,” she said.

“One of the thoughts [from the suppliers] therefore was that you could buy forward, so you’d essentially place the orders knowing you were going to start production but pay now. That’s an option they thought was more likely.”

Addressing the role of the government in supporting the supply chain, the MP said: “This is JLR and their issue, it shouldn’t really lie with the taxpayer, but it may be the taxpayer needs to step in temporarily.”

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It’s looking like we’ll see a return of the rent tax credit in the Budget

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FINANCE MINISTER PASCHAL Donohoe has hinted that we may see a return of the rent tax credit in this year’s Budget.

While Donohoe was coy with reporters today about the status of the credit in this year’s Budget, he did say he wanted to “emphasise my recognition of the importance of that credit” when it comes to lowering the bills for tenants.

The measure allows renters to claim amounts worth up to €1,000 annually over the past two years.

It was initially worth €500 when it was introduced in 2022, but was doubled and backdated for anyone who hadn’t claimed the initial credit.

Budget Day is just a few weeks out and details have emerged on numerous measures.

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Donohoe gently lifted the lid on the role of the rent tax credit today when he told reporters of the benefits it has played for renters over recent years.

“I am well aware of the importance of the rent tax credit and the really valuable role that it has played in supporting tenants with rising rents,” Donohoe said.

The rent tax credit is due to come to an end at the end of this year and while no decisions have yet been made on any tax measure, I just emphasise my recognition of the importance of that credit and the role that it plays in supporting tenants.

While last year’s pre-election budget was described as a give-away by some, expectations for this year’s Budget on 7 October are being tempered.

The Government has been at pains to emphasise uncertain economic winds that might be coming our way, and with US tariffs coming in at 15% a more cautious approach is being taken.

This year’s €9.4 billion package includes €1.5 billion in tax cuts and a €7.9 billion spending package, an increase of 7.3% for next year.

Despite these figures being modelled at a 0% US tariff scenario, Taoiseach Micheál Martin indicated this week that he didn’t think the numbers would change. But we’ll see as we get closer to October.

Here’s a rundown some of what we know already.

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Martin Lewis on one big misunderstanding about student loans

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Martin Lewis on one big misunderstanding about student loans

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