Parts and panel maker Stadco, a major supplier to MG Rover, Stadco, is reported to be cutting 280 jobs at two of its UK plants.

It will cut 230 jobs in Coventry and 50 in Shrewsbury, as "a direct consequence of the probable demise of MG Rover", a BBC report said.

However, the broadcaster noted that a task force set up to help suppliers of MG Rover made payouts of £63,000 to six suppliers earlier on Thursday, saving 234 staff from redundancy.

The BBC said Stadco made the body for the MG TF and body panels for the Rover 25, 45 and 75 and employs just under 1,500 people in the UK, 450 of which are based in Coventry.

The firm reportedly said it had started the consultation process involved in making 280 staff redundant.

The BBC noted the government has said a total of £40 million in grants would be made available to support businesses who supplied Rover, but John Edwards, a member of the task force and chief executive of Advantage West Midlands, reportedly said that helping companies which are heavily dependent on Rover for most of their work could be more difficult than helping those which are more diversified.

"We have to target those companies, which with some support, can survive," he told BBC Radio 4's Today programme, adding: "We know of [firms] where 85% of their business is supplying Rover. In these circumstances, it is hard for them to see a future for themselves. We are talking to government about (the possibility of) deferring VAT and National Insurance payments... but it is very difficult."

The BBC added that, according to Advantage West Midlands, some of the £40 million available for grants could be used to assist residents near Rover's Longbridge factory who are affected by the problems there - for example, shops that serve Rover workers.