AN INFLUENTIAL group of MPs today condemn the failure to deliver badly-needed aid to crisis-hit Mersey carmaker Jaguar – describing themselves as "astounded" at the delays.

A hard-hitting report by the Commons transport select committee attacks government foot-dragging on a credit guarantee deal that would release a £340m European loan to develop "clean cars".

And it highlights the wider failure to pay out "one single penny" under the much-hyped £2.3bn Automotive Assistance Programme (AAP), launched by Business Secretary Lord Mandelson back in March.

The British car industry – which employs 570,000 people in 70,000 businesses – will be "lost" to countries which do actively support struggling firms without faster action, it concludes.

The report comes just days after Jaguar announced that 300 jobs would go at its Halewood plant in Merseyside when it ceases production of the X-Type Jag at the end of this year.

At the weekend, there were reports Jaguar was considering axing all 2,000 workers at Halewood, in order to save its other UK factories.

Now, the all-party committee has expressed astonishment that the government guarantee has failed to materialise – despite ministers describing Jaguar as a "top priority". The report concluded: "The fact that the United Kingdom has the second largest premium car industry in the world should be seen as a key strategic strength.

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