It has been revealed that LDV, the British van maker controlled by Russian Tycoon Oleg Deripaska, seems to be doomed after the firm reapplied for administration. It is estimated that nearly 6,000 jobs will be lost as a result.

Sales of commercial vehicles fell by 50% in Europe, a worse decline than car sales. Erik Eberhardson, chairman of Gaz (Russia's commercial vehicle manufacturer that owns LDV) originally asked the government for a bridging loan of £20 million, but his request was denied.

Weststar, the Malaysian vehicle distributor leading the second rescue plan, admitted it had not been able to find backers for a new loan either, despite a desperate appeal to the government for £45 million to keep the van maker afloat.

The plea was ignored, as officials stated they were not willing to risk further taxpayer’s money. Therefore, the chances of finding alternative investment looked bleak.

Paul Newton, analyst at researcher IHS Global Insight, said: “It's a shame. It would be very tough for the government to justify putting any more money into it. They have already put in £25m and aren't going to see that again.”

Ian Pearson, business minister, said: “We are disappointed with the news that, despite the bridging facility made available by the government, Weststar of Malaysia has been unable to proceed with its purchase of LDV.”