THE Government will unveil a package of support today for workers at MG Rover after the collapse of a proposed deal with a Chinese company - threatening thousands of redundancies and an election nightmare for Tony Blair.

Trade and Industry Secretary Patricia Hewitt will meet workers at the factory in Longbridge, Birmingham, which will no longer produce cars after the company's directors called in the receivers.

Receivers from PWC will travel to Longbridge today to begin the task of deciding what to do with the company after time finally ran out on a proposed joint venture with the Shanghai Automotive Industry Corporation (SAIC).

Some analysts believe Longbridge could have built its last car, ending 100 years of history and dealing a hammer blow to the economy of the West Midlands.

There will undoubtedly be massive political fallout and the news will weigh heavily on the Government, even though Labour politicians and union leaders made it clear that ministers did all they could to secure a deal.

A bridging loan of £110m was offered, and Prime Minister Mr Blair telephoned the Chinese president from Downing Street on Wednesday night in an attempt to keep negotiations on track.

Ms Hewitt announced the news shortly after 10pm, following a round of discussions aimed at salvaging something for the workforce.

Earlier in the day, MG Rover had suspended car production after component suppliers refused to supply orders - unless the company paid first.

Workers on the day shift were told the suspension was temporary, but company bosses warned that time was running out for MG Rover and urged the Government to act.

Ms Hewitt said a £100m bridging loan would be available to the company - provided there was a realistic prospect of an agreement with the Chinese.

But, in the end, even £100m was not enough.

At a brief but tense Press conference led by the Trade Secretary and Tony Woodley, leader of the Transport and General Workers Union, Ms Hewitt said that the board of MG Rover had decided to call in the receivers.

She said: "This is a devastating blow to all those involved - the workers and their families, the company's suppliers and the wider community. Tonight, our thoughts are with them."

The development threatens 6,000 jobs at the company's Longbridge factory and a further 20,000 at component suppliers throughout the country.

It also calls into question what will happen to hundreds of MG Rover dealers across the UK and the world.

It brings to an end a century of car production at the Longbridge plant - birthplace of the Mini and the scene of so many industrial disputes during the 1970s - and brings down the curtain on the British motor industry.

The prospect of an MG Rover meltdown only weeks before a General Election has been the nightmare scenario for Government ministers for months.

The Longbridge plant draws its workforce from 11 constituencies, six of which are Labour marginals.

If the Government is blamed for failing to do enough, Labour could be wiped out in the Midlands.

Ms Hewitt defended the Government's actions, saying: "We have done everything possible. We sent a team of officials to Shanghai to try to ensure the success of this deal.

"We have already, through Customs and Excise, extended help of £25m through a VAT deferral to the company.

"What we will now do is work with the unions, with the administrator, with all concerned, to try to secure, even in these difficult circumstances, a future for car manufacturing in Longbridge."

Mr Woodley said: "The last thing we want to see is another supermarket on a car manufacturing plant."