Government officials said in December that Britain’s largest automotive employer could lead exodus from UK

Jaguar Land Rover would have considered moving car production out of the UK and slashing jobs if not for a £380m subsidy for its sister battery company, government officials claimed privately.

Officials at the Department for Business and Trade (DBT) warned in December that Britain’s largest automotive employer may have triggered an exodus from the UK car industry, according to state aid documents prepared by the competition regulator.

JLR is owned by Tata Sons, an Indian conglomerate that also controls Britain’s largest steelmaker. Tata Steel has received £500m to upgrade its Port Talbot steelworks. Earlier this month the government also extended a grant of £380m to Agratas, Tata’s new business, which is building a battery “gigafactory” in Somerset to supply JLR and other carmakers.

The document revealed that the planned total investment for the vast factory had increased to £5.2bn, up from £4bn when it was initially announced in 2023.