Rolls-Royce has stepped up pressure on the Government to back its bid to re-enter the narrow-body jet engine market, warning that up to 40,000 jobs could go abroad if ministers fail to act quickly. Chief executive Tufan Erginbilgic, speaking at the Farnborough Airshow, said talks over financial support were progressing but urged the Government to make a decision soon, as Airbus and Boeing are expected to choose engine suppliers for their next-generation narrow-body jets within two years. He argued the project would significantly boost UK advanced manufacturing and the supply chain, and that the sums involved were not large in that context.

The narrow-body engine market is estimated to be worth £1.6 trillion globally, and the project sits at the heart of Labour's industrial strategy focus on advanced manufacturing. The Daily Mail reported in December that Rolls-Royce could build the engines in Germany or the US instead, where it already has sites and cheaper energy, without hundreds of millions of pounds in taxpayer support. Erginbilgic said he had not yet spoken to the new Prime Minister but wanted to raise the issue, welcomed new Chancellor John Healey's understanding of the company, and separately warned that unstable tax policy could deter major UK investment.