Government loans for businesses, but not Jaguar Land Rover

Peter Mandelson, the Business Secretary, is to unveil a package of measures to provide credit for small and medium-sized businesses.

This is likely to be a loan guarantee scheme, reducing the potential risk to banks which lend money. This should encourage banks to make credit available.

But there is still no sign of agreement over a large business which has been asking for support, namely Jaguar Land Rover.

Apparently, talks earlier this week ended with the Treasury still unconvinced the Government should make credit available to the carmaker. But the situation could change very rapidly.

I'm told the loan guarantees announced by Lord Mandelson will benefit the automotive industry, but this may mean just the suppliers rather than the major manufacturers.

Suppliers are crucial - and employ more people between them than the actual carmakers - but they will only survive if they have someone to supply to.