Car trouble

UK business secretary Peter Mandelson has unveiled his government’s £2.3bn support package to aid the country's troubled car industry - but trade unions warned that the help would arrive too late.

The government’s proposed measures include unlocking up to £1.3bn in loans from European Investment Bank (EIB) guarantees and offering up to £1bn to non-EIB backed low-carbon projects.

The announcement also included a commitment from the Department of Innovation, Universities and Skills (DIUS) to offer automotive employers improved access skills support through the its ‘Train to Gain’ service.

Speaking yesterday at the House of Lords, Mandelson said: ‘Britain needs an economy with less financial engineering and more real engineering. The car industry can and should be a vibrant part of that future.

‘The steps we are taking today will help companies speed their way to becoming greener, more innovative and more productive. This is the route to securing jobs for the long term as we build a more balanced economy for Britain's future.’