Government to ease Longbridge job crisis

The UK government taskforce charged with rescuing Rover's struggling Longbridge manufacturing plant wants to set up a cluster of high-tech companies to alleviate the pending jobs crisis.

As many as 19,000 jobs could be lost if production is cut at the plant. But the taskforce is suggesting that many car industry workers could apply their skills in the aerospace, information technology and telecoms industries.

Companies will be encouraged to set up in the area with grants from European development funds as well as £129m in government aid set aside for the Longbridge crisis.

A final report containing the proposals will be submitted in June, at which time the taskforce may ask for further funds.