Rolls-Royce warns UK government over £3bn jet engine project, threatens overseas production
Rolls-Royce CEO Tufan Erginbilgic has issued an ultimatum to UK Prime Minister Andy Burnham, warning that failure to provide financial support for a £3bn short-haul jet engine program could result in the loss of 40,000 UK jobs and production moving abroad. The engines are intended for next-generation Airbus and Boeing aircraft. Erginbilgic stated that while Rolls-Royce prefers to build in the UK, it is exploring funding agreements with foreign governments, notably Germany. He noted that competitors Pratt & Whitney and GE/Safran receive significantly more government funding. The company had been close to a deal under former PM Keir Starmer but now must re-engage with the Burnham administration. Erginbilgic expressed hope due to Chancellor John Healey's familiarity with the firm. The decision window is narrow, as manufacturers will select engines within two years.
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