Workers throughout the Jaguar Land Rover (JLR) supply chain are being told to apply for universal credit following the cyber attack on the company, a union has said.

Unite said staff were being laid off with “reduced or zero pay” following the hack, which has forced the carmaker to shut down its IT networks and halt production.

Unite has called for the UK government to set up a furlough scheme, similar to the one announced by the Scottish government for bus maker Alexander Dennis.

JLR declined to comment on the union’s claim. It has previously said factory production would not resume until 24 September at the earliest, but sources claim disruption could last until November.

Unite general secretary Sharon Graham said it was the “government’s responsibility to protect jobs and industries that are a vital part of the economy”.

“Workers in the JLR supply chain must not be made to pay the price for the cyber attack,” she added.

Minister for Industry Chris McDonald met representatives from JLR on Tuesday.

In a statement on Wednesday, he said he has had discussions with the firm about restarting production and will be meeting with others in the industry, and those that supply it, in the coming days to hear about the issues they are facing as a result of the cyber attack.

“We know this is a worrying time for those affected, and although Jaguar Land Rover are taking the lead on support for their own supply chain, our cyber experts are supporting them to resolve the issue as quickly as possible,” he said.

A spokesperson for Prime Minister Keir Starmer said on Tuesday there were currently no discussions about offering taxpayer help to JLR amid the production pause.

JLR’s supply chain supports 104,000 jobs in the UK and sits at the top of a pyramid of suppliers, many of whom are highly dependent on the carmaker being their main customer.

The hack, which occurred more than two weeks ago, has forced the manufacturer to shut down its computer systems and close production lines worldwide.

The crisis is thought to have cost JLR at least £50m a week. A criminal investigation is under way.

There are growing concerns that many of JLR’s suppliers, small and medium-sized firms, do not have the resources to cope with an extended interruption to business and subsequent losses.

JLR’s three factories in Britain normally produce around 1,000 cars a day. It has told many of its 33,000 staff to stay at home.

Liam Byrne MP, the chair of the Commons business and trade committee, said on Wednesday that the attack could see hundreds of supply chain staff laid off.

Byrne said he had written to the chancellor to request Covid-style emergency help for suppliers.

“This is not a mere flicker on the screen at Jaguar Land Rover, this is a digital siege and it’s sent a cyber shockwave through their supply chain,” he said.

“We think this is an attack which is much, much worse than the attack that took down Marks and Spencer.”

JLR has said it delayed restarting production as a “forensic investigation” of the cyber attack continued and it considered a “controlled restart” of global operations.

Stock prices in London closed in the green on Wednesday, following the Bank of Canada’s rate cut and ahead of the US Federal Reserve’s own announcement, at which its own reduction is expected.

“Markets have fully priced in a 25-basis-point (US) rate cut, but the key lies in the updated summary of economic projections and (Fed Chairman Jerome) Powell’s tone,” commented Naga analyst Frank Walbaum. “Should policymakers reinforce the prospect of multiple cuts in the next months, equities could edge higher. Conversely, any signs of hesitation may trigger profit-taking at current levels.”

Meanwhile, in the UK, Donald Trump’s historic second state visit commenced.

Mr Trump and his wife were treated to a personal greeting outside Victoria House, a little-known property on the royal family’s private Windsor estate. His formal ceremonial welcome in Windsor Castle’s quadrangle featured the largest ever guard of honour for this occasion.

The FTSE 100 index closed up 12.71 points, 0.1%, at 9,208.37. The FTSE 250 ended up 127.94 points, 0.6%, at 21,619.81, and the AIM All-Share closed up 3.99 points, 0.5%, at 771.86.

On the FTSE 100, Barratt Redrow gained 1.9%.

The housebuilder’s pre-tax profit in the year to June 29, when including Redrow, which merged with Barratt in October, decreased on-year to £273.7 million from £363.2 million. Revenue declined to £5.58 billion accounting for both businesses, while total home completions rose to 16,565 from 14,004.

However, Barratt Redrow posted adjusted pretax profit of £591.6 million before purchase price adjustments, ahead of its July prediction in line with the consensus of £582.6 million.

Games Workshop rose 1.2%.

The fantasy game figurine maker and retailer said trading to August 31 is in line with its expectations for the current financial year. It also declared a dividend of 85 pence, more than doubling the total dividends declared so far in financial 2026 to £2.25.

On the FTSE 250, PRS REIT gained 6.2%.

The real estate investment trust has entered into non-binding heads of terms to sell its operating subsidiary, PRS REIT Holding Co Ltd, and potentially liquidate its assets. The proposed buyer is an investment vehicle owned by a fund advised by real estate investor Waypoint Asset Management.

In European equities on Wednesday, the CAC 40 in Paris closed down 0.5%, while the DAX 40 in Frankfurt ended up 0.1%.

The pound was quoted higher at 1.3661 dollars at the time of the London equities close on Wednesday, compared to 1.3642 dollars on Tuesday. The euro stood at 1.1847 dollars, higher against 1.1837 dollars. Against the yen, the dollar was trading lower at 146.35 yen compared to 146.65 yen.

In US news, building permits and housing starts declined in August, data published by the US Census Bureau and the US Department of Housing & Urban Development showed.

Privately-owned housing units authorised by building permits in August fell 3.7% to a seasonally adjusted annual rate of 1.31 million, from 1.36 million in July. This was below the FXStreet-cited consensus of an uptick to 1.37 million.

Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1.31 million, down 8.5% from 1.43 million in July and below the consensus of a milder decrease to 1.37 million.

Stocks in New York were mixed. The Dow Jones Industrial Average was up 0.7%, the S&P 500 index down 0.1%, and the Nasdaq Composite down 0.5%.

The yield on the US 10-year Treasury was quoted at 4.04%, narrowing from 4.05%. The yield on the US 30-year Treasury was quoted at 4.64%, narrowing from 4.66%.

Meanwhile, the Bank of Canada cut its key interest rate as expected by 25 basis points to 2.5%.

“With a weaker economy and less upside risk to inflation, the Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks,” the Bank of Canada said in its statement. “Looking ahead, the disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity.”

Brent oil was quoted lower at 68.04 dollars a barrel at the time of the London equities close on Wednesday from 68.32 dollars late on Tuesday.

Gold was quoted at 3,685.67 dollars an ounce against 3,680.32 dollars.

The biggest risers on the FTSE 100 were Marks & Spencer, up 14.4p at 357.8p; Centrica, up 5.8p at 169.2p; Coca-Cola Europacific Partners, up 210p at 6,640p; Segro, up 12.6p at 646p; and Barratt Redrow, up 6.8p at 373p.

The biggest fallers on the FTSE 100 were Fresnillo, down 56p at 2,186p; Anglo American, down 57.5p at 2,518.5p; BAE Systems, down 41p at 1,955.5p;  Endeavour Mining, down 46.5p at 2,813.4p; and Glencore, down 4.3p at 306.2p.

On Thursday’s economic calendar, all eyes will be on the Bank of England’s interest rate decision. US weekly jobless data and Australian unemployment are also scheduled.

On Thursday’s UK corporate calendar, Renishaw releases its full-year results and Next has its half-year earnings. Auto Trader and Foresight Environmental Infrastructure both have their annual general meetings.

Contributed by Alliance News.