Rolls-Royce closes in on engine deal ahead of Budget

Rolls-Royce is pushing for a government subsidy deal that could be announced in time for next week’s UK Budget, according to reporting. Talks on financial support—potentially worth hundreds of millions of pounds—stalled earlier this year after Sir Keir Starmer was ousted as prime minister, but negotiations may now be nearing conclusion. The plan is meant to help Rolls-Royce re-enter the £1.6 trillion jet-engine market for narrow-body aircraft serving short-haul routes, with the goal of developing and testing a demonstrator model of its new UltraFan engine. Rolls’ CEO Tufan Erginbilgic wants a decision by year-end, amid warnings that lacking support could drive development abroad.