Rolls-Royce issues Burnham ultimatum over £3bn jet engine project

Rolls-Royce issued an ultimatum to UK leadership over a £3bn short-haul jet-engine plan, warning that without government backing up to 40,000 UK jobs could be at risk. Speaking on Tuesday, CEO Tufan Erginbilgic said Labour should commit financial support to help the company build engines for next-generation aircraft programs being developed by Airbus and Boeing, or production could shift abroad. He argued the engine programme would support around 40,000 jobs, while also noting Rolls-Royce is exploring funding agreements with foreign governments, including interest believed to be strong from Germany. Rolls-Royce said an essential support package must be in place soon because engine selections for the jets are expected within the next two years. The report also references uncertainty around a potential funding deal linked to the timing of Sir Keir Starmer’s resignation as prime minister. Competitors Pratt & Whitney and a GE-Safran alliance are described as fully funded via government support at several times Rolls-Royce’s level.