Britain’s unemployment numbers surged higher today after Barclays, the UK bank, doubled its number of job cuts to 4,200 and Jaguar Land Rover, the embattled carmaker, eliminated 450 workers.

It emerged yesterday that Barclays was planning to reduce staff numbers by 2,100 across its investment banking division, adding to the 400 IT staff cut by the bank last week.

However, the bank surprised investors today by sheddng a further 2,100 jobs from its retail and commercial businesses.

Earlier, Jaguar Land Rover said that it would eliminate 450 staff, including 300 managers, as well as delay bonuses and pay rises as demand for its high-end vehicles waned.

The cuts follow days of increasing redundancies as UK businesses struggle to cope with the economic downturn.

The developments will put more pressure on the Government to act quickly to help companies and out-of-work Britons.

Unemployment is 1.86 million and economists expect the number to hit three million by next year.

Labour announced plans on Monday to invest £500 million in getting the long-term unemployed back to work through a series of measures.

Today Lord Mandelson unveiled a £20 billion scheme to help small businesses to secure funding from banks, which are still proving reluctant to lend to companies.

This week Merrill Lynch and Bank of America said that 1,900 of its workers would lose their jobs when the two banks merge, with the axe expected to fall in London as well as in the United States.

JCB, the machinery group, said yesterday that it would shed nearly 700 staff. Also Wincanton, the logistics business, will cut 1,000 employees, and Waterford Wedgwood, the Irish maker of fine china and glassware, which went bust last week, has reduced its UK headcount by 367.

Nearly 1,500 jobs are also at risk after Land of Leather and Newcastle Productions, the Findus Food maker, which employs 420 people, went into administration.

Commenting on the headcount reduction, news of which sent its shares down 10 per cent to 150p, Barclays said: “Barclays continually reviews its operations and resources so that they function efficiently as business needs and customer requirements evolve. In the current market conditions, this is particularly important.”

It is understood that the jobs cuts at the business division, which includes Barclaycard and high street branches, will be in the UK and will be mostly made up of contract and temporary staff as well as positions that are vacant.

The bank hopes to inform all workers who are affected by the end of the week.

Jaguar Land Rover said that it had started consultations with employee representatives on its proposed redundancy programme.

It said: “Clearly, these choices are very difficult. No company wants to lose skilled and experienced employees in any condition.

"Throughout the process we will ensure employees are treated with dignity."

Sales of Land Rovers in particular have been hit by the credit crunch, and the company acknowledged today that it did not expect demand to pick up for some time.

David Smith, the chief executive of Jaguar Land Rover, said: “It is only right and proper that our response to the unavoidable impact of the credit crunch and a severe reduction in demand includes actions across all grades and functions in the company."

Tata, which bought Jaguar Land Rover from Ford last year for $2.3 billion (£1.5 billion), has asked the UK Government to provide financial support similar to the funding deal secured by its American rivals.

However, the UK Government has yet to provide aid to the British car industry.

Jaguar Land Rovers cuts are the latest to hit the embattled sector in the UK, after Nissan, the Japanese car giant, announced last week that it would shed 1,200 employees in Sunderland.

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