Jaguar's Indian owner finds own rescue cash

Tata Group was poised to act following a warning from Business Secretary Lord Mandelson that no cash would be forthcoming until all private rescue attempts were exhausted.

The funding, which could help secure 15,000 manufacturing jobs and thousands more for suppliers, came after Lord Mandelson warned that the Government could only step in after Tata had done its bit to rescue the firm.

Yet behind the scenes, Tata received assurances that the state will become a "lender of last resort" if needed.

Gordon Brown had decided to intervene to prevent the collapse of the carmaker and was preparing to announce a short-term bailout package today or tomorrow.

But tough rhetoric in public and private reassurance appear to have helped the Tata Group to secure enough cash to postpone the bailout until after Christmas.

The Tata Group told ministers that it needed help to pay suppliers.

But over the weekend Lord Mandelson said: "If there is anything that the Government can appropriately do for any such company, then it will have to meet - and pass - some pretty tough tests."

But according to senior Whitehall figures, Tata found the cash because its banks were convinced that the Government would prevent a collapse.