Photo: Jorge Láscar / CC BY 2.0 (cropped)
The British government and Rolls-Royce have agreed a jointly funded, 10-year £2.5 billion jet-engine programme, but no new government grants have yet been awarded under the agreement.
The government announcement Wednesday sets out a cooperation framework for developing next-generation engines for passenger and military aircraft. Future government support remains subject to approval, affordability, value-for-money and legal checks, as well as agreement on terms with Rolls-Royce.
The announcement, made alongside the government’s Budget, did not give a funding split between the company and the government.
Single-aisle aircraft are a target
The programme is aimed in part at developing engines for single-aisle passenger planes used on short- and medium-haul routes. The government said technologies and skills developed through the agreement could also be used in military aircraft engines.
Planned areas of work include advanced materials, electronic systems, manufacturing technology, robotics and artificial intelligence. The agreement also includes a jobs and skills plan and cooperation with UK-based suppliers.
Jobs and economic benefits are forecasts
The government said the programme is expected to support 3,300 existing jobs by the end of 2029, with the potential for tens of thousands of new roles in later decades. Those are projected benefits, not jobs already created by the agreement.
Rolls-Royce estimates that securing a UK engine for the single-aisle market could lead to further investment and add £120 billion to the economy over the programme’s lifetime. That figure is an estimate, not money committed under the £2.5 billion programme.
The framework does not itself award a new grant. The government said future support must also pass subsidy-control checks before funding can proceed.
JBizNews Desk | London
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