Rolls-Royce nears deal for UK subsidies on new engine
Rolls-Royce is close to an agreement for up to £200 million in British government funding to develop a short-haul aircraft engine, according to reports citing people familiar with the matter. An announcement could come as early as next week.
The money would help Rolls-Royce develop and test a demonstrator of its UltraFan 30 engine. Reports put the funding at £100 million to £200 million.
Chief executive Tufan Erginbilgic said the project would create 40,000 British jobs. He said this would happen if the government backed it and the engine gained a position on a narrowbody airframe.
Erginbilgic also said Rolls-Royce held talks with other governments, including Germany and the US, about support for the programme.
Key facts
- Who
- Rolls-Royce (aerospace engine manufacturer seeking the subsidies); Tufan Erginbilgic (CEO of Rolls-Royce)
- What
- Rolls-Royce is reportedly nearing an agreement for up to £200mn in British taxpayer subsidies to fund a new engine for short-haul aircraft, which could be announced as early as next week.
- When
- 23 October 2026
- Where
- Britain, UK
- Status
- Reported