Subsidies for Rolls-Royce might seem a bit rich, but they are inevitable

Rolls-Royce is seeking up to £200 million in UK government subsidies to support the development of its new UltraFan engine. Despite Rolls-Royce's strong financial performance and ability to fund its own research, the company argues that government support is standard practice in the aerospace industry, with competitors receiving larger subsidies. Rolls-Royce emphasizes the potential economic benefits of the UltraFan project, including job creation and increased exports. The company also highlights that the Labour government's industrial strategy identifies UltraFan as a key technology for state support through the Aerospace Technology Institute. While acknowledging the apparent contradiction of subsidizing a profitable company, the article suggests that government funding for Rolls-Royce is likely inevitable due to industry norms and strategic economic considerations.

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