Jaguar Land Rover announced cutbacks, with 450 staff losing their jobs as the firm looks to secure a bridging loan.

The luxury car firm is currently seeking out bridging finance from the government, in order to help it meet its running costs.

Its balance sheet has suffered in the recent financial climate, with consumer demand for new vehicles depressed thanks to the general economic slowdown.

Simultaneously, the credit crunch has made it difficult for businesses in the UK to secure loans.

The government has previously proved unwilling to provide "bailouts" for individual companies - reducing the likelihood of Jaguar securing the bridging loan.

However, business secretary Lord Mandelson suggested that ministers were looking into a rescue package for the firm, the BBC reports.

Commenting on the job cuts news, prime minister Gordon Brown added: "Jaguar Land Rover's decision today reflects the continued downturn in the market and that is a reflection of what is happening more generally in the global economy."