‘Moral hazard’ fears over Jaguar Land Rover’s £1.5bn government loan guarantee – business live

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Dame Emma Walmsley will step down from the GSK board on 31st December, when Luke Miels takes her CEO seat.

But she will remain with the company until her notice period ends on 30 September 2026, which means another year of salary, pension and benefits, plus the possibility of a bonus for the 2025 financial year.

And, importantly for the Walmsley finances, she’ll be treated as “a good leaver”, meaning she’ll still receive awards under GSK’s performance share plan.

Walmsley: It's the right moment for new leadership

Dame Emma Walmsley says she is off to begin “new adventure”, once she steps down as GSK’s CEO at the end of the year.

“2026 is a pivotal year for GSK to define its path for the decade ahead, and I believe the right moment for new leadership. As CEO, you hope to leave the company you love stronger than you found it and prepare for seamless succession.

I’m proud to have done both - and to have created Haleon, a new world-leader in consumer health. Today, GSK is a biopharma innovator, with far stronger momentum and prospects than nine years ago. Most importantly, the inspiring people in our labs, factories, and markets worldwide are delivering innovation that matters to get ahead of disease.

I know Luke will lead them brilliantly to even greater impact for patients. I look forward to supporting this transition and to cheering GSK’s future success as I begin my own new adventures.”

GSK announces surprise change of CEO

UK pharmaceuticals company GSK has surprised the City by announcing a change of chief executive.

Emma Walmsley will step down as CEO after nine years at the helm, and will be replaced by company insider Luke Miels.

Miels is currently GSK’s chief commercial officer, but has now been crowned as “CEO Designate”. He will become CEO on 1^st January 2026.

GSK tells investors:

Luke is a highly respected, experienced global biopharma leader, having worked at senior levels in the US, Europe and Asia, at AstraZeneca, Roche and Sanofi-Aventis, prior to joining GSK.

This experience, and significant contribution to GSK, mean he is exceptionally well-qualified to lead the company, and to deliver the patient and shareholder value inherent in the company’s future ambitions.

Even so, this change at the top is a surprise. GSK says Miels’s appointment “reflects effective long-term succession planning by the Board and Emma”, and that it considered a range of candidates, internal and external.

During her nine years in charge, Walmsley has been conducting a wide-ranging overhaul of GSK, including spinning off its consumer health business into a new company, Haleon.

‘Moral hazard’ fears over JLR’s £1.5bn government loan guarante

Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.

There’s relief in the West Midlands this morning, after the government agreed to underwrite a £1.5bn loan guarantee to Jaguar Land Rover (JLR) to help the carmaker, and its suppliers, ride out a disruptive cyber-attack.

The loan guarantee was announced on Saturday night, after ministers also assesssed other options such as becoming a ‘buyer of last resort’ for JLR’s suppliers, or a furlough scheme for auto workers.

The business secretary, Peter Kyle, said it will save jobs dependent on JLR’s factories in Britain:

“This cyber-attack was not only an assault on an iconic British brand, but on our world-leading automotive sector and the men and women whose livelihoods depend on it.

“Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK.”

But there are also concerns that the loan creates a ‘moral hazard’ problem – potentially taking pressure off UK companies to protect themselves from the threat of hackers through insurance or robust security.

Liam Byrne, the Labour chair of the House of Commons business and trade select committee, has warned about the arrangement’s risks.

Byrne cationed (via the Financial Times):

“Going forward, there is a real risk of moral hazard.”

“As a country we’re going to have to remake the way the state and market work together to try and safeguard British industry against these kinds of risks.”

However…. even with this loan guarantee, JLR still faces massive disruption. The hack has frozen car production for a month (so far…), creating turmoil across its supply chain – particularly in the West Midlands surrounding the company’s headquarters in Gaydon and the Solihull factory,

There were reports earlier this month that JLR had “failed to finalise” a cyber insurance deal before being struck by a cyber attack earlier this month, which rather sharpens the moral hazard question…..

…. especially as the company is profitable, and owned by India’s Tata Motors.

The agenda

• 9.30am BST: Bank of England mortgage approvals and credit data

• 1pm BST: Dave Ramsden: panellist at the ECB ‘Inflation: drivers and dynamics 2025 conference’ in Frankfurt.

• 3pm BST: Dallas Fed manufacturing index

• 3pm BST: US pending home sales