UK government and Rolls-Royce sign £2.5bn deal to build jet engines and create thousands of jobs
Investment set to boost Britain’s aerospace capabilities
The UK government has partnered with Rolls-Royce in a £2.5 billion agreement aimed at developing cutting-edge jet engines over the next decade, supporting the reindustrialisation of Britain’s aerospace sector.
This partnership, announced by Chancellor during his Budget presentation yesterday, focuses on the development of next-generation jet engines for both passenger and military aircraft.
Rolls-Royce estimates the initiative could contribute £120 billion to the UK economy over its lifetime while supporting 3,300 existing jobs by 2029 and potentially creating tens of thousands more in the future.
The agreement signifies a strategic movement towards reindustrialisation, highlighting the government’s commitment to fostering economic growth and sustaining manufacturing capabilities within the UK.
Prime Minister Andy Burnham said, “Britain has always been an industrial powerhouse. But that strength isn’t just part of our past, it should be a core part of our future too."
Business Secretary Jonathan Reynolds echoed this sentiment, emphasising the long-term job creation and the strategic impact on jet engine manufacturing in the UK.
The programme will focus on a range of areas including engineering, research, and manufacturing, with most jobs being created outside of London and the South East, tapping into Rolls-Royce’s extensive network across the country.
Rolls-Royce CEO Tufan Erginbilgic hailed the agreement as a landmark moment for the UK aerospace industry, stating the importance of such partnerships in securing the UK's position in the global aerospace market.
The programme will leverage advancements in technology including robotics, AI, and advanced manufacturing, not only bolstering the UK's defence capabilities but also opening avenues for exports and investment.
The government is set to publish its plan for Britain later this year, outlining how it will create the conditions for businesses and communities to thrive across the country.