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UK Government and Rolls‑Royce Agree Joint £2.5bn Programme to Develop Next‑Generation Jet Engines

To protect jobs and regional supply chains the programme aims to keep engine design and manufacture in the UK with any payments subject to legal and subsidy approvals.

Overview

  • The government and Rolls‑Royce have agreed a framework for a jointly funded 10‑year, £2.5 billion programme to research and develop lower‑emission engines for single‑aisle commercial aircraft and to preserve military engine capability.
  • Officials say the deal is expected to support about 3,300 existing jobs through the next few years and could lead to tens of thousands of additional roles across Rolls‑Royce and its suppliers over coming decades.
  • No grants have been paid yet and any public funding will first need to pass checks on affordability, value for money and compliance with UK subsidy‑control rules before contracts are finalised.
  • Rolls‑Royce has said it will pick UK sites for new assembly, testing and advanced manufacturing capacity, with planned investment including work at its Derby facilities to make turbine blades and composite fan components.
  • The programme targets the narrowbody market — the highest‑volume segment of civil aviation — with airframers expected to choose engine partners in the coming years and possible commercial service entry of new engines in the mid‑to‑late 2030s.