The UK government announced on 28 October 2026 a multi-decade cooperation agreement with Rolls-Royce that includes a jointly funded 10-year, £2.5 billion programme to develop next-generation jet engines for passenger and military aircraft. The government said the deal could keep jet engine manufacturing in the UK for decades and is expected to support 3,300 existing jobs over the next few years, with tens of thousands of new roles possible beyond that. Most of the roles are expected to be outside London and the South East.

The programme targets engines for single-aisle aircraft. Rolls-Royce estimates that securing a UK engine on such planes could add £120 billion to the economy over the programme's lifetime. The government said the technology could serve both commercial and military engines, and that the work will cover advanced materials, electronic systems, manufacturing, robotics and AI.

The government said no new grants have been awarded at this stage. Future support remains subject to value-for-money, affordability, legal and subsidy-control checks, and to agreement on terms with Rolls-Royce. The announcement, made as the Chancellor delivered the Budget, cites a sector employing around 113,000 people and bringing in over £46 billion per year.