The Government was criticised by MPs today over its support for the recession-battered motor industry as ministers faced calls to show greater urgency.

A cross party committee of MPs accused ministers of holding out the possibility of action to help car manufacturers, without delivering promised support.

The Business and Enterprise Committee expressed concern about the coherence of Government policy and highlighted a series of “shortcomings” in the automotive assistance programme.

“We cannot discount the industry’s complaints about the delays in agreeing support measures and we are profoundly disappointed that to date not one single penny has been advanced through the scheme. We hope that this will change rapidly,” said the report.

The MPs said they were “astounded” it had taken so long to arrange funding for Jaguar Land Rover for its future technology investments, adding that the Government’s guarantee was still under discussion.

“As at July 7, 2009 there has been no indication that there will be such a guarantee.

“We are astounded that it has taken so long to arrange this, particularly since the support needed is so limited.”

Regarding proposals to set in place a scheme to support automotive finance, the report said: “Once again the Government has held out the possibility of action but has not yet delivered. We seek clarification of the Government’s intentions.”

The committee also expressed concern about the coherence of government policy towards the motor sector, saying: “It is important that the entire Government shares a strategic approach to the UK automotive industry. This means that matters such as taxation, environmental targets and support measures should be considered together to ensure they do not inadvertently conflict.”

Committee chairman Peter Luff (Conservative Mid Worcestershire), said: “If the industry dwindles further, it will not only be employment which suffers. Automotive companies are responsible for high levels of United Kingdom research and development, which in turn supports other United Kingdom industries.

“Though we welcome the intention behind many of the Government’s measures to support the industry, there must be more sense of urgency, and a greater demonstration of support.”

The MPs said that despite the relatively late introduction of the car scrappage scheme, there were “encouraging signs” that it had been effective.

Tony Woodley, joint leader of Unite, said: “This report hits the nail on the head. More than seven months on from the establishment of the Automotive Assistance Programme, we are yet to see a penny paid out to car and components companies.

“The committee says it is astounded that it is taking so long to help to companies to save jobs and skills. Sadly, we’ve gone past being astounded and are beginning to get very angry that good people are losing their jobs while Government departments shuffle paper.”

Business Minister Ian Lucas said: “As I made clear to the committee, the Automotive Assistance Programme will look at loan guarantees below the original £5m threshold and this is happening now. From the start we have aimed to make the scheme as flexible as possible and companies should not rule themselves out without talking to us.

“We will consider all the committee’s recommendations and respond in due course.”

Business Minister Pat McFadden said the assistance scheme was for long-term reinvestment in the industry, not short-term rescue funding.

More than 110,800 orders for new vehicles have been placed since the scrappage scheme was announced in the Budget, according to Government officials.