Hopes of imminent direct aid for Britain's cash-strapped car industry have been dashed by the Government.
Treasury sources have said there are no firm proposals for an urgent rescue package for the battered sector, according to the Mail on Sunday.
The Government has also reportedly dismissed calls for car manufacturers to be able to tap into the Bank of England's £200 billion liquidity fund that was set up for banks.
The report will come as a blow to the sector, as unions and the car industry trade body warn that the industry could run out of cash within weeks without help.
The Government is believed to be working on a package to help the car industry, although any direct funding is now thought to be unlikely.
The Government is believed to be looking at potential help in providing State-backed loans, such as bridging loans on commercial terms and wider guarantees for loans from banks.
It is hoped that an announcement will come within days, but the Treasury source reportedly told the Mail on Sunday that no specific proposals had yet gone before Chancellor Alistair Darling.
Around 850,000 people work in the car industry and almost half of those workers could reportedly be thrown out of work within weeks if the Government does not step in.
Unite, the trade union, is said to believe the UK industry needs £13 billion to see it through the recession. Car giant Vauxhall earlier this week said it was asking staff to take sabbaticals on 30% pay as it seeks to avoid redundancies amid the economic crisis.
The turmoil being faced by UK car manufacturers echoes the woes seen in the hard-hit US market. The rejection of the bailout for Detroit's Big Three carmakers sent markets falling around the world and left the US facing the prospect of massive job cuts.
