IT may have disappeared two decades ago, but the memory of British Leyland still casts a dark shadow over the UK’s motor industry.

As the rest of the world gets on with the job of protecting car companies, this Government seems petrified by the idea.

During the 1970s, British taxpayers poured more than £2bn into British Leyland to no avail.

In a chilling parallel with today, the government was forced to step in when the cash-strapped company was unable to raise finance from the banks. But that is where the similarities end.

Jaguar-Land Rover today is a totally different car company to the one which was once part of British Leyland.

Crucially, it now makes cars people want to buy. The Jaguar XF has been lauded by the motoring press, and Land Rover is making major strides with new “green” technology.

Jaguar is an industry benchmark for reliability in the tough-to-crack North American market, beating Japanese marques like Lexus and Honda in satisfaction surveys.

Yet the Government seems curiously unconcerned by the company’s request for a £1bn loan guarantee.

Having rushed to prop up the banks, ministers appear content to follow a laissez-faire attitude with regard to car manufacturing. Is it because of all that British Leyland baggage?

Gordon Brown, defending his spending plans yesterday, said: “We should not walk by on the other side when people are facing problems.”

Jaguar-Land Rover needs our help – now.