The government has been accused of failing to rescue struggling industrial companies through its “Project Birch” bailout scheme amid signs that manufacturers are slashing investment in a fight for survival.
Against a backdrop of mounting job losses, Labour said the Treasury support scheme was gathering dust after only one company qualified for emergency bailout funding.
Industry sources said about 10 companies wanted to use the scheme, which involves the government taking equity stakes in firms in exchange for emergency finance, but had found the process difficult and that talks had fizzled out.
Celsa Steel, a Cardiff-based steel company, became the first to secure support through Project Birch in July. However, talks that may have led to taxpayers owning stakes in Jaguar Land Rover and Tata Steel ended a month later, the Financial Times reported.
JLR had raised £560m from five Chinese banks