Mayor Claire joined in Derby by the Prime Minister and Chancellor to mark £2.5bn Rolls-Royce programme

The Mayor of the East Midlands, Claire Ward was joined by the Prime Minister Andy Burnham, the Chancellor John Healy MP and Britain’s Secretary of State for Business, Innovation, Science and Trade Jonathan Raynolds MP at Rolls-Royce in Derby.

The government and Rolls-Royce will work together on a 10-year programme backed by £2.5 billion of funding, announced by the Chancellor in yesterday’s Autumn Budget. The programme will develop the next generation of more efficient aircraft engines, using lower-emission jet engine technologies designed for passenger and military aircraft.

Mayor Claire said:

“This budget is one that recognises the vital contribution that the East Midlands plays in growing the UK economy. In this light, the £2.5 billion investment into Rolls-Royce to develop the next generation of jet engines is hugely significant. With one of its major sites based in Derby and thousands of people from the East Midlands working there, there is an opportunity to protect and create jobs, drive innovation, and secure the future of one of our most productive industrial sectors in the region.”

This partnership programme is expected to support 3,300 UK jobs at Rolls-Royce and partner businesses by the end of 2029. Tens of thousands more jobs could be created if Rolls-Royce can secure a UK jet engine position on new narrowbody aircraft, which have a single passenger aisle.

To develop the workforce needed for the programme, Rolls-Royce and the Government will work together on a jobs and skills development plan. The investment plan could also benefit the region’s academic institutions through new research carried out by university departments.

Tufan Erginbilgic, CEO, Rolls-Royce, said:

“This is a landmark moment for the UK’s aerospace industry. This is a once-in-a-generation opportunity to lay the foundations for decades of sustainable economic growth across the UK, creating high-value jobs and transforming the country’s advanced manufacturing supply chain. Aerospace is a growing and globally attractive market and this programme with Government is vital to enable the UK to compete. Working together, we can also sustain the nation’s capability to power military aircraft and secure its position as one of only two countries that can design, develop, make and service the jet engines that power the world’s commercial airliners.”

Developing the next generation of aircraft engines

The programme would include an engine demonstrator project to develop and test new technologies. A key aim is to help Rolls-Royce secure a position supplying UK-built engines for the next generation of single-aisle passenger aircraft, the type commonly used on short-haul routes. These aircraft are expected to enter service in the mid-to-late 2030s.

The research would also sustain development and testing capabilities used in defence aerospace, supporting expertise in designing, developing and manufacturing advanced engines in the UK.

The initial plan remains subject to final agreement, and the longer-term opportunities depend on securing a place on future aircraft programmes.