Rolls-Royce and the Government agree £2.5bn jet engine programme

Rolls-Royce and the Government have agreed a £2.5 billion programme to develop the next-generation jet engines.

Announced during last week’s Budget, the 10-year agreement aims to develop cleaner, more efficient engines for passenger and military aircraft, helping secure the UK’s position in a highly competitive global aerospace market.

Rolls-Royce, which has its civil aerospace and defence divisions in Derby, estimates that securing a UK engine for single-aisle passenger aircraft could attract billions of pounds in additional investment over the coming decades and add £120 billion to the economy over the programme’s lifetime.

The programme is expected to support 3,300 jobs by the end of 2029, with the potential for tens of thousands more in the longer term.

Roles could span engineering, research and manufacturing, with opportunities expected across the country, including in regions where Rolls-Royce has established sites and supply chains.

Tufan Erginbilgic, chief executive of Rolls-Royce, said: “This is a landmark moment for the UK’s aerospace industry.

“This is a once-in-a-generation opportunity to lay the foundations for decades of sustainable economic growth across the UK, creating high-value jobs and transforming the country’s advanced manufacturing supply chain.

The programme would advance more efficient and lower-emission jet engine technologies – as Rolls-Royce looks to secure a UK engine position on the next generation of commercial aircraft in the fast growing, high-volume, ‘narrowbody’ market segment – including through an engine demonstrator project.

It would also sustain vital development and testing capabilities, strengthening national resilience by supporting the UK’s critical sovereign capabilities in defence aerospace.

New narrowbody aircraft – also known as ‘single-aisle’ planes – are expected to enter commercial service in the mid-to-late 2030s, with manufacturers selecting engine partners over the next few years, in anticipation of potential aircraft launches around the turn of the decade.

The UK Government’s Industrial Strategy highlights the narrowbody market as the single biggest growth opportunity in aerospace over the next 50 years.

Mr Erginbilgic added: “Aerospace is a growing and globally attractive market and this programme with the Government is vital to enable the UK to compete.

“Working together, we can also sustain the nation’s capability to power military aircraft and secure its position as one of only two countries that can design, develop, make and service the jet engines that power the world’s commercial airliners.”