The government last night unveiled a £6.5m loan to MG Rover to stave off redundancies for another week.

Industry secretary Patricia Hewitt announced the money would be made available while a rescue deal is attempted for the stricken car manufacturer with Chinese firm Shanghai Automotive.

"The government has been in discussion with trade unions that represent workers at MG Rover and the administrators throughout the weekend," said a statement.

"The government has agreed to provide the necessary funds to the administrators in order to avoid the issuing of redundancy notices at MG Rover while efforts are made to keep the business together."