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Jaguar Land Rover to receive government grant

Grant of up to £27m to help develop new Land Rover Vehicle

It was announced that Jaguar Land Rover would receive a government grant of up to £27 million to develop a new Land Rover. Tata Motors who own Land Rover said the car would be the smallest lightest and most efficient it has produced.

The project would secure employment at the Halewood plant in Merseyside and will cost £400 million, a final decision on whether to proceed with production is due later this year.

The money that Land Rover receive is from a separate government scheme, not from funds that the motor industry have been asking the government to provide to support manufacturers through the recession. Car makers in crisis have yet to receive any funds.

Prime Minister Gordon Brown told MPs that car manufacturers and other businesses would get more help from banks to see them through the recession. David Frost, director general of the British Chambers of Commerce, said that it was vital that the finance now available actually reaches businesses working in the automotive supply chain.

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