Tata, the Indian owner of Jaguar Land Rover, has agreed to inject “tens of millions” of pounds into the British car company to prevent an immediate cash flow crisis, while the government continues to consider the case for a taxpayer-funded bail-out.

The cash injection from Tata has bought ministers breathing space to respond to demands for multi-billion-pound loan guarantees from the car sector. Alistair Darling, chancellor, is understood to be concerned that any state support does not set too generous a precedent for other sectors.