Rolls-Royce has signalled it could manufacture its next-generation UltraFan engine outside Britain unless the government provides financial support, raising fresh questions about the UK’s commitment to its aerospace industrial strategy.

The FTSE 100 engineering group, led by chief executive Tufan Erginbilgic, is seeking to re-enter the highly lucrative market for narrowbody, single-aisle aircraft engines, the fastest-growing segment of global civil aviation. However, it says industrialising the UltraFan platform for this market will require public backing, similar to the subsidies received by competitors in the United States and France.

UltraFan, a more fuel-efficient engine architecture developed over the past decade at a cost of around £1 billion, is central to Rolls-Royce’s long-term civil aerospace ambitions. But moving from research and development to full-scale production will hinge on government support, according to Erginbilgic.

“This kind of support of industry is not uncommon,” he said, pointing to the scale of state assistance available to rivals such as GE Aerospace and Pratt & Whitney in the US and Safran in France. “Our competitors get two or three times what we get. It is a competitive world and you need to think about that.”

Rolls-Royce has reportedly been seeking up to £200 million from the UK government and has held discussions with Business Secretary Peter Kyle. While the company recently announced plans for up to £9 billion in share buybacks over the next three years, Erginbilgic insisted industrial backing for major aerospace programmes is standard practice globally.

The chief executive argued that the UltraFan programme aligns directly with the government’s own industrial strategy, which identifies narrowbody engines as a critical growth opportunity.

“Narrowbody is the single biggest opportunity in a generation,” he said. “It is natural for the UK government to support it. Not supporting it would be a strange thing to do.”

Rolls-Royce is understood to be evaluating alternative manufacturing locations, including Germany, where it builds business jet engines, and the United States, where it produces military engines, if UK support does not materialise.

The economic implications could be significant. Erginbilgic claimed a domestic UltraFan narrowbody programme would support up to 40,000 jobs, create a new UK supply chain and generate at least £100 billion in long-term economic value. He estimated that every £1 invested could deliver £34 in economic growth.

“The amount we are asking from the government is a fraction of what we are investing ourselves,” he said, noting that Rolls-Royce has doubled its internal investment levels since 2022.

The company exited the narrowbody market in 2011 when it sold its stake in a joint venture with Pratt & Whitney, a move widely viewed as a major strategic misstep. Since then, Rolls-Royce’s civil aerospace business has been heavily reliant on long-haul engines such as the Trent XWB for the Airbus A350 and the Trent 1000 for the Boeing 787.

Re-entry into the short-haul market comes at a time when rivals are facing operational challenges. Pratt & Whitney has struggled with durability issues affecting its geared turbofan engines, leading to delivery delays and aircraft groundings across several airlines.

Erginbilgic said UltraFan would offer superior fuel efficiency and durability compared with current narrowbody engines and confirmed that Rolls-Royce is exploring industrial partnerships to share risk.

“We are talking to multiple parties,” he said.

With global demand for single-aisle aircraft expected to dominate the next aviation cycle, the government’s decision on funding could determine whether the next phase of Rolls-Royce’s civil aerospace expansion is anchored in the UK or moves abroad.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Bill Gates, the Microsoft co-founder and billionaire philanthropist, addressed employees at the Bill & Melinda Gates Foundation this week, admitting to extramarital affairs with two Russian women and apologizing for his past association with convicted sex offender Jeffrey Epstein, while firmly denying any participation in Epstein’s criminal activities.

In a town hall meeting Tuesday, Gates described his meetings with Epstein as a “huge mistake” and took responsibility for actions that have drawn renewed scrutiny following the release of previously sealed documents by the U.S. Department of Justice in January. He emphasized that he “did nothing illicit” and “saw nothing illicit” during their interactions, according to reports from staff present and confirmed by a foundation spokesperson.

The candid discussion, first reported by The Wall Street Journal, comes amid ongoing fallout from Epstein’s high-profile case, which has implicated numerous powerful figures in finance, politics and technology. Gates, 70, has faced questions about his ties to Epstein since at least 2019, when reports surfaced of multiple meetings between the two after Epstein’s 2008 conviction for soliciting a minor for prostitution. The latest revelations add personal details to Gates’ narrative, including the affairs, which he said Epstein later learned about.

Gates detailed one affair with a Russian bridge player he met at bridge events and another with a Russian nuclear physicist encountered through business activities. He acknowledged that these relationships occurred during his marriage to Melinda French Gates, from whom he divorced in 2021 after 27 years. The divorce announcement that year cited an “irretrievably broken” marriage, and Gates previously admitted to a single affair with a Microsoft employee around 2019, which led to an internal investigation at the company.

A Gates Foundation spokesperson confirmed the town hall remarks, stating that Gates “took responsibility for his actions” and addressed the Epstein links directly to provide clarity for staff amid media coverage. The foundation, one of the world’s largest charitable organizations with an endowment exceeding $70 billion, focuses on global health, poverty alleviation and education. Employees have expressed concerns in the past about how Gates’ personal controversies might impact the organization’s reputation and partnerships.

Epstein, a financier who died by suicide in 2019 while awaiting trial on federal sex-trafficking charges, cultivated relationships with influential individuals, including Gates, former President Bill Clinton and Britain’s Prince Andrew. Court documents unsealed in January 2026 as part of ongoing litigation related to Epstein’s estate revealed emails and other communications showing Gates met with Epstein at least three times between 2011 and 2014. One email from Epstein to Gates in 2017 referenced a potential philanthropic collaboration, though Gates has maintained their discussions were limited to science, philanthropy and global issues, not Epstein’s criminal enterprises.

Gates has repeatedly expressed regret over the association. In a 2021 interview following his divorce, he called spending time with Epstein a “mistake” and said he ended the relationship after realizing it lacked substance. Tuesday’s town hall echoed that sentiment, with Gates reportedly apologizing for involving foundation executives in some meetings with Epstein, which he now views as inappropriate.

The timing of Gates’ comments aligns with heightened public interest in Epstein’s network, fueled by the DOJ’s document release and upcoming congressional testimonies from figures like Hillary Clinton. Social media reactions to the news have been mixed, with some users praising Gates for transparency while others criticized him for downplaying the extent of his Epstein ties. One Instagram post from a news outlet garnered thousands of likes and comments, with users questioning the sufficiency of his denials.

Critics, including victims’ advocates, have called for greater accountability from those who associated with Epstein. Ghislaine Maxwell, Epstein’s former partner, was convicted in 2021 of sex trafficking and is serving a 20-year sentence. Ongoing lawsuits against Epstein’s estate continue to uncover details about his operations, though Gates has not been accused of wrongdoing in any legal filings.

Gates’ personal life has been under a microscope since the divorce. Melinda French Gates, now leading her own philanthropic efforts through Pivotal Ventures, cited Gates’ Epstein meetings as a factor in their separation, according to reports at the time. She has since focused on women’s empowerment and gender equality, donating billions independently.

Despite the controversies, Gates remains a prominent voice in global health and climate initiatives. Through the Gates Foundation, he has pledged over $10 billion toward vaccine development and pandemic preparedness, including significant contributions to COVID-19 response efforts. In recent months, he has advocated for AI ethics and sustainable energy solutions, co-authoring books and appearing at international forums.

The foundation’s work continues unabated, with recent grants supporting malaria eradication and agricultural innovation in Africa. Staff morale, however, has been a point of discussion internally, with some employees anonymously telling media outlets that Gates’ personal scandals occasionally overshadow the organization’s mission.

Legal experts suggest that Gates’ proactive addressing of the issue may help mitigate reputational damage, especially as no evidence has emerged linking him to Epstein’s crimes. “By owning the mistakes and denying illicit activity, he’s drawing a clear line,” said one crisis communications specialist who spoke on condition of anonymity.

As investigations into Epstein’s network persist, including potential congressional hearings, Gates’ statements could face further examination. For now, his focus appears to be on moving forward, emphasizing philanthropy over past associations.

Representatives for Gates did not immediately respond to requests for additional comment beyond the foundation’s statement.

The episode underscores the long shadow cast by Epstein’s crimes, affecting even those on the periphery years after his death. Victims’ groups continue to push for transparency and justice, reminding the public that the story is far from over.