Government, Rolls-Royce Agree £2.5bn for UK Jet Engines
The UK government and Rolls-Royce have agreed a £2.5 billion programme, jointly funded over 10 years, to develop jet engines for single-aisle aircraft…
The UK government and Rolls-Royce have agreed a £2.5 billion programme to develop next-generation jet engines, the government said on October 28, in a deal it says could keep engine manufacturing in Britain for decades.
The Chancellor announced the agreement as he delivered his first Budget. The programme is jointly funded over 10 years and covers cleaner, more efficient engines for passenger and military planes.
Jobs and the single-aisle market
The government said the agreement is expected to support 3,300 jobs by the end of 2029. It also pointed to the potential for tens of thousands of new roles in the decades beyond that.
The engines will power single-aisle aircraft, the planes that carry Britons on summer holidays in Europe. Only a handful of nations and companies can build them.
Rolls-Royce estimates that securing a UK engine on these planes could lead to billions more being invested in Britain in the coming decades. It says that could add £120 billion to the economy over the lifetime of the programme.
The Industrial Strategy identified the opportunity as the UK aerospace sector's biggest over the next 50 years, according to the government.
Where the work will be
The new jobs are expected to span engineering, research and manufacturing, from design through to the factory floor. The government said the vast majority will be created outside London and the South East, using Rolls-Royce sites and supply chains across the country.
Officials framed the deal as a step in the Prime Minister's plan to reindustrialise Britain. They also said it helps secure future military air capability.
What ministers and the company said
Business Secretary Jonathan Reynolds said reindustrialisation "isn’t just a soundbite – it’s a cast iron commitment to deliver good jobs and growth for people all over the country." He said the agreement makes sure Britain will win the race to power the next generation of passenger planes.
He also called it "a real vote of confidence in the economic plan we’re delivering." In his view, it gives businesses the certainty they need to grow and invest in the UK.
Tufan Erginbilgic, chief executive of Rolls-Royce, called it "a landmark moment for the UK’s aerospace industry." He described it as "a once-in-a-generation opportunity to lay the foundations for decades of sustainable economic growth across the UK."
Erginbilgic said the programme would create high-value jobs and transform the country's advanced manufacturing supply chain. He added that aerospace is a growing and globally attractive market.
The government's own headline figure is £2.5 billion over 10 years, with Rolls-Royce's £120 billion economic estimate stretching across the full lifetime of the programme.
Source: gov.uk
