Rolls-Royce is nearing an agreement with the UK government for between £100 million and £200 million to support development and testing of a demonstrator for its UltraFan 30 engine. The proposed funding would target short-haul aircraft, including potential future successors to the Airbus A320 and Boeing 737, as Rolls-Royce seeks to return to the narrowbody market after an absence of about 15 years.
Negotiations remain ongoing, and no agreement had been publicly announced. An announcement could come as early as the week beginning 26 October, although the timing was not confirmed. Reuters was unable to independently verify the report and Rolls-Royce had not responded to a request for comment outside normal business hours.
The funding would support the next phase of the UltraFan 30 programme, which Rolls-Royce unveiled earlier in 2026. The narrowbody segment is considerably larger than the widebody market on which the company currently concentrates, making a successful engine programme strategically significant for its civil aerospace business.
Chief Executive Tufan Erginbilgiç said in July that government backing, combined with selection of the engine for a narrowbody aircraft, could support about 40,000 jobs across Rolls-Royce and its UK supply chain. The company has also discussed possible programme support with governments in Germany and the United States, while seeking an initial UK commitment during the first half of 2026.