A GOVERNMENT package of support aimed at helping Ford and the rest of the British car industry through the recession was today given a lukewarm reception by a Hampshire MP.

Chris Huhne, Liberal Democrat MP for Eastleigh, said plans to provide billions of pounds of loans and guarantees for investment in plants, and for the development of greener vehicles, would “underpin” Ford’s commitment to develop the next generation of Transit van in Southampton.

But he also said it was “disappointing” that ministers had failed to come up with concrete proposals to increase the availability of credit so customers could afford to buy a new vehicle.

Mr Huhne spoke after Business Secretary Peter Mandelson told the House of Lords the Government would offer guarantees to unlock £1.3 billion of loans from the European Investment Bank and a further £1 billion in guarantees or loans to cover investments which brought “special value” to Britain.

An additional £35 million could be made available to increase funding for workers in the automotive sector alongside a “step change” in research for greener vehicles.

New trade and investment minister Mervyn Davies has been asked to draw up a plan to improve the car companies’ financing arms’ access to funding.

Mr Huhne said: “It’s partially good news. Making guarantees from European Investment Bank funding may potentially enable Ford to finance investment for the next generation of Transit. It will allow Ford to get funding for its programme."

Shadow Business Secretary Kenneth Clarke said the proposals were not ambitious enough and were a reflection that the country could not afford to underwrite large-scale assistance for the industry.