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

Every country supports its aerospace business, while keeping the production at home is vital. At least with Rolls, the UK is backing a winnerRolls-Royce, the engine-maker and defence firm that is spitting out so much cash it can shove £7bn to £9bn towards buying back shares over the next three years, would like UK taxpayers to find a few quid – reportedly up to £200m as a first slug – to help fund one its big bets. The company would “appreciate” financial support from the government to smooth work on a new engine, says its chief executive, Tufan Erginbilgiç.Outrageous? Well, corporate welfare for Rolls is obviously absurd in the abstract. If there is a definition of a company that can afford to pay for its own research and development, this is it. One might also say Rolls owes us a favour since it was the recipient of billions of pounds-worth of loan guarantees from the UK’s export finance agency when the Covid wolf was at the corporate door in 2020. Continue reading...