Business

The phrase “side hustle” once suggested something temporary, squeezed in after work for a little extra cash. In 2026, that picture has changed.

Across the UK and beyond, Gen Z women are turning unconventional online platforms into structured micro-businesses, thinking in terms of audience, margins, repeat customers, and brand positioning rather than quick wins.

What looks casual from the outside is often run with the mindset of a founder.

From quick cash to business strategy

The young women who are thriving in this space are not treating niche platforms as one-off opportunities. They are making decisions that would be familiar to any small business owner: who their ideal customer is, how often that customer is likely to buy, and what makes their offer different in a crowded market.

Instead of relying solely on social media algorithms, they are intentionally building communities and repeat buyers. Some track revenue, campaign performance and seasonal patterns in simple spreadsheets. Others develop content calendars and basic funnels. The constant theme is a shift from reactive earning to deliberate planning.

This is where the “side hustle” starts to look a lot more like a micro-business.

Why niche marketplaces matter

Mainstream platforms are noisy and unpredictable. Competing for attention on general social networks can be tiring, especially when rules and visibility change frequently.

Niche marketplaces, by contrast, attract buyers with clear intent. The platform does not need to explain what it is for, and the audience arrives already interested in that specific category. For Gen Z women who understand how to manage digital content and boundaries, this focus creates a more stable environment to build an independent income stream.

It also creates space for specialisation. Instead of trying to appeal to everyone, creators can serve a narrow audience extremely well.

Niche creator marketplaces as business infrastructure

Some of the most interesting growth has happened on platforms that help women monetise specific types of content on their own terms, with clear systems around payments, communication, and safety.

For instance, creator marketplaces where individuals can sell feet pics provide a defined framework in which the seller controls pricing, style and interaction. When approached professionally, this is less about novelty and more about understanding a niche audience, testing offers, and building repeat custom.

Similarly, platforms that allow creators to sell used panties operate within structured guidelines. For those who choose to participate, success depends on treating it as a commercial activity: understanding platform rules, setting clear boundaries, responding professionally and planning for consistent earnings rather than one-off sales.

In both cases, the difference between sporadic income and a functioning micro-business is structure. The most successful creators systemise how they market, sell and deliver, instead of relying on impulse.

Branding, boundaries and professionalism

One of the biggest misconceptions about unconventional income streams is that they are inherently chaotic. In reality, many of the most successful Gen Z women in these spaces are meticulous about branding and boundaries.

They invest time in developing a recognisable style, consistent messaging and clear expectations for buyers. They define what is included in an offer, what is not negotiable and how communication should work. Those boundaries are not just about safety, they are also a core part of their brand value.

Professionalism shows up in small details: timely responses, clear terms, transparent pricing and a predictable customer experience. In other words, the same fundamentals that underpin any resilient online business.

The role of digital PR and positioning

As these micro-businesses grow, many creators begin to think beyond the platform itself. Visibility in search results, media mentions and external backlinks can make a significant difference to traffic and perceived credibility.

Some work with specialist partners, a digital PR and outreach agency that helps founders earn placements on high-authority sites. For a creator building a niche income stream, this kind of support can turn a closed ecosystem profile into a recognisable brand that appears in articles, guides, and round-ups read by potential buyers.

This is a strategic evolution: moving from being one of many profiles on a marketplace to being a named, discoverable business in its own right.

Financial literacy as a competitive advantage

Another key shift in 2026 is around financial literacy. More Gen Z women are openly talking about tax, savings, investment and risk management in relation to their online income.

Instead of treating every payout as spending money, many allocate portions for tax obligations, emergency funds, skill development and marketing. Some reinvest into better equipment, education or diversifying their income streams. Others graduate from platform-only revenue to selling digital products, offering coaching, or collaborating with brands.

This mindset turns marketplace earnings into working capital. It is what separates a short-term side hustle from a micro-business that can survive platform changes and economic uncertainty.

Looking ahead

The rise of niche creator marketplaces is part of a broader trend in micro-entrepreneurship. Work is becoming more modular and more personal. You do not need to launch a traditional company to build a meaningful income stream, but you do need to think like a business owner.

For Gen Z women, the opportunity lies in combining three elements: a focused niche, a platform that fits their boundaries and values, and a strategic approach to branding, operations and finance. Whether that involves mainstream channels or more unconventional marketplaces, the principle is the same.

The side hustle is no longer just a side note. Treated with intention, it is the foundation of a resilient micro-business.

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From Side Hustle to Micro-Business: How Gen Z Women Are Monetising Niche Marketplaces in 2026

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Hornby has agreed to sell the iconic slot car racing brand Scalextric for £20 million in a move designed to strengthen its balance sheet and refocus the business on its core brands.

The Margate-based toy maker has struck a deal with family-owned investment vehicle Purbeck Capital Partners, which will acquire Scalextric and its associated intellectual property through a newly formed holding company, Scalextric Motorsports.

The transaction, which includes a mix of upfront and deferred payments, will see Hornby use the proceeds to reduce debt and invest in its remaining portfolio, including Airfix and its model railway operations. Hornby is backed by Frasers Group founder Mike Ashley.

Scalextric was first introduced in 1957 by inventor Fred Francis and quickly became a staple of British toy cupboards, allowing families to race miniature cars around electric tracks at home. Production was later moved to Hornby’s Margate factory, where the brand became synonymous with hands-on motorsport fun for generations.

Purbeck Capital is led by Mark Brown, the former chief executive of US spirits giant Sazerac, which owns brands such as Southern Comfort and Fireball. The Scalextric acquisition marks Purbeck’s first deal.

Brown said the firm was “honoured and thrilled” to acquire such a long-standing British motorsport brand, describing Scalextric as a business that has brought families together for nearly seven decades.

“As we look to a long-term future, with Scalextric as a now family-owned company, we are energised by the opportunity to continue bringing competitive racing fun to families, while expanding into new areas of motorsport,” he said. He added that the brand also has scope to promote physical play and hand-eye coordination at a time when many families are seeking to balance screen time with real-world activities.

As part of the agreement, Brown will also take on a role supporting Hornby with its wider strategic transformation plans. The aim is to create a group structure in which individual brands can operate more independently and profitably.

The disposal reflects Hornby’s ongoing efforts to stabilise its finances after a challenging period for the traditional toy sector, which has faced rising input costs, changing consumer habits and intense competition from digital entertainment.

By divesting Scalextric, Hornby is betting that a sharper focus on its core modelling brands, combined with a stronger balance sheet, will position the near century-old business for a more sustainable future, even as one of its most recognisable names embarks on a new chapter under separate ownership.

Read more:
Hornby steers sale of near 70-year-old toy brand Scalextric for £20m

On-demand laundry and dry-cleaning platform Laundryheap has accelerated its international growth strategy with launches in four new markets: Colombia, Mexico, Malaysia and Scotland.

The latest expansion sees the company enter Bogotá, Mexico City, Kuala Lumpur and Edinburgh, taking its total footprint to 28 cities across 16 countries. Existing markets include the United States, Singapore, the Netherlands, the UK, the UAE and France, with further launches planned throughout 2026.

Founded by Deyan Dimitrov, Laundryheap positions itself as the world’s largest on-demand laundry service, having served more than 400,000 customers globally and processed over 110 million items to date. The business has grown rapidly over the past five years, reporting 700 per cent growth since 2020 as consumers increasingly embraced app-based convenience services.

Dimitrov said the new openings marked a significant step in the company’s ambition to become the most trusted global brand in the sector.

“Our launches into Colombia, Mexico, Malaysia and Scotland mark another major milestone in Laundryheap’s journey to becoming the world’s most trusted name in on-demand laundry and dry cleaning,” he said. “Expanding into these vibrant markets reflects both the strength of our technology platform and the growing global demand for reliable, 24-hour turnaround services.”

Laundryheap’s app-based model allows customers to book collections for clothes and bedding, which are laundered or dry cleaned and returned within 24 hours. In select cities including London, Dubai and Abu Dhabi, the company introduced an Express Overnight service last year, offering turnaround times of as little as eight hours.

Beyond individual customers, the company has expanded into commercial partnerships, working with bars, restaurants, hotels and short-term rental operators. Corporate partners include Emirates Skywards, CitizenM and Klarna.

The expansion follows a series of strategic acquisitions aimed at consolidating the fragmented on-demand laundry market. Over the past three years, Laundryheap has completed seven acquisitions, including France’s Lavoir Moderne and Singapore-based Oppa Laundry. It previously acquired UK rival Laundrapp in 2022.

The company has raised £17 million in funding to date from investors including Alex Chesterman, Nickleby Capital, Verb Ventures, The Side by Side Partnership and Claret Capital Partners.

With fresh market entries in Latin America and Southeast Asia, and further planned growth in the United States and the Gulf region, Laundryheap is pursuing what it describes as its most aggressive international expansion strategy to date, as competition intensifies in the global on-demand services sector.

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Transport Salaried Staffs’ Association (TSSA) has called for Sir Keir Starmer to resign as Labour leader following the party’s defeat to the Green Party in the Gorton and Denton by-election.

The transport and travel union, which is affiliated to the Labour Party, said the result reflected growing dissatisfaction among voters and warned that Labour’s recent political direction was costing it support.

Maryam Eslamdoust, general secretary of TSSA, said the party’s positioning under Keir Starmer had alienated core voters and created space for the Greens to gain ground.

“It’s clear that the disastrous lurch to the right under Keir Starmer is haemorrhaging Labour votes to the Greens,” she said. “There’s an urgent need for a change in leadership, and Keir must announce his departure immediately.”

Eslamdoust argued that replacing the leader alone would not be sufficient to reverse Labour’s fortunes. Instead, she said, the party needed a broader shift in policy direction, returning to what she described as its “radical soul”.

She called for an expansion of public ownership across key industries, including water, energy and mail services, alongside a substantial rise in the minimum wage. She also advocated for the introduction of a wealth tax to fund public services.

“Only by embracing ‘Real Labour’ policies will we be able to win back support from the voters who switched from our party to the Greens in Gorton and Denton,” she said.

The intervention underscores growing tensions between parts of the trade union movement and Labour’s current leadership, particularly over economic policy and the party’s positioning on public ownership and redistribution.

Labour has not yet responded publicly to the TSSA’s remarks.

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Circular tech start-up Kibu has secured an investment offer from entrepreneurs Peter Jones and Jenna Meek following a televised pitch on Dragons’ Den, putting repairable children’s electronics firmly in the national spotlight.

The award-winning brand, which produces modular, repairable headphones for children, appeared on the long-running BBC programme represented by co-founder and chief executive Sam Beaney. Kibu’s pitch focused on its mission to redesign children’s consumer electronics around circular principles, prioritising disassembly, repair and customisation over disposal.

Founded through a collaboration between London-based design studio Morrama, advanced manufacturing partner Batch.Works and Beaney, Kibu first launched via a successful Kickstarter campaign. Since then, the company has transitioned from prototype to scalable commercial product, positioning itself as a challenger brand in a sector dominated by low-cost, disposable devices.

Kibu’s headphones are built with modular components that can be taken apart and reassembled by children. Individual parts can be replaced in minutes, extending product lifespan and reducing electronic waste. The design also allows for aesthetic customisation, enabling users to change colours and update components as preferences evolve.

The brand has already received international recognition for innovation and sustainability, tapping into growing parental demand for durable, repairable products in an era of heightened environmental awareness.

Speaking during the broadcast, Jones praised the concept and offered backing, citing his own early experience building and selling computers as a teenager. Meek also expressed interest in supporting the venture.

Beaney told the Dragons that empowering children to build and repair their own technology shifts their relationship with ownership and value. “When a child builds something themselves, it changes how they feel about it. When they learn they can fix what they’ve made, it changes how they see everything they own,” he said.

Jo Barnard, founder and creative director of Morrama, described the brand as a blueprint for futureproof electronics. By combining onshored manufacturing with agile supply chains, she argued, Kibu could unlock wider opportunities across children’s consumer technology.

Julien Vaissieres, chief executive of Batch.Works, said the project demonstrated how manufacturing can be structured to reduce waste while maintaining commercial viability. As both a founder and a parent, he said, the appeal lay in giving children agency over the products they use daily.

Now in its 23rd series, Dragons’ Den remains one of the UK’s most visible entrepreneurial platforms, attracting around three million viewers per episode on BBC One. For Kibu, the appearance offers both capital and brand recognition at a pivotal growth stage.

With investor backing now on the table, Kibu plans to scale distribution while continuing to develop its circular design ethos. The company believes its repair-first approach could extend beyond headphones into a broader range of children’s electronics, an industry segment increasingly scrutinised for its environmental footprint.

As sustainability pressures intensify and right-to-repair legislation gains momentum across global markets, Kibu’s model may offer an early glimpse of how future consumer electronics for children could be designed, manufactured and owned.

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Kibu secures investment offer from Peter Jones and Jenna Meek after Dragons’ Den pitch

Society of Motor Manufacturers and Traders (SMMT) has reported a sharp contraction in UK vehicle output at the start of the year, with total production down 13.6 per cent in January as weaker export demand weighed heavily on the sector.

A combined 67,415 vehicles left British factories during the month, comprising 65,249 cars and 2,166 commercial vehicles. Car production declined by 8.2 per cent compared with January 2025, while commercial vehicle output slumped by 68.6 per cent year on year.

The fall was primarily driven by reduced overseas demand. Although domestic appetite for UK-built cars remained broadly stable, export volumes softened, particularly in markets outside Europe. Exports typically account for the majority of British vehicle production, leaving manufacturers exposed to fluctuations in global demand and trade conditions.

The United States remained the second-largest destination for UK-built cars after the European Union, accounting for 14.1 per cent of exports. Japan followed with a 2.7 per cent share, while China and Turkey took 2.5 per cent and 2.4 per cent respectively.

Electrified vehicle output also declined. Production of battery electric vehicles (BEVs), plug-in hybrids and hybrid models fell by 10.6 per cent to 26,854 units, representing 41.2 per cent of total car output. Despite the drop, electrified vehicles continue to form a substantial share of UK production as manufacturers transition towards zero-emission platforms.

The industry body said the weak start to the year reflected subdued global demand and underlined the importance of stable trade relationships. Protectionist measures and “made in Europe” proposals in some markets were cited as additional headwinds.

Mike Hawes, chief executive of the SMMT, described January’s figures as disappointing but pointed to expected recovery later in the year as new electric models enter production.

“Weak exports to markets beyond Europe amid soft demand delivered a disappointing start to the year for UK vehicle manufacturing,” he said. “It reinforces the need for a forward-looking trade agenda that secures existing preferential access and builds new ones with markets worldwide.”

The SMMT expects overall car production to increase by more than 10 per cent to around 790,000 units in 2026, with the potential to reach one million vehicles by 2027, provided new model launches proceed on schedule and investment conditions remain supportive.

The outlook hinges on competitive energy costs, a strong domestic market and targeted supply chain support, the trade body said, as the sector continues its capital-intensive shift towards electrification.

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In their most simple forms, expense policies are designed to control costs, ensure fairness and reduce financial risk. On paper, most organisations already have these documents in place, often reviewed annually and signed off by finance and HR teams. In theory, they should provide clarity and consistency.

In practice, however, many expense policies fail to deliver the control they promised at the offset. Spend becomes unpredictable, enforcement slips into inconsistency, and finance teams are left responding to problems rather than preventing them.

It’s easy to assume that this failure stems from careless or dishonest employees. Humans are, after all, only human. In most cases, however, expense-related issues are far more likely to be the result of policies built around assumptions that do not reflect how people actually think, decide, and behave in real working environments.

To understand why expense policies break down, we need to look beyond the documents themselves, and examine the psychological and social forces shaping everyday spending decisions at work. That’s quite a hefty task, so we’ve parachuted in the aid of expense management software specialists at Webexpenses to assist with exploring this topic further.

Flawed assumptions lead to flawed systems

Most company policies are written for a hypothetical, “best-case” employee: rational, attentive, well-rested, and operating in a low-pressure environment. They assume employees will read the rules carefully, remember them, and apply them consistently at the point of purchase.

As appealing as this assumption may be, it bears little resemblance to how real workplaces operate. Expense decisions are frequently made at the end of long days, during travel, or between meetings, when time and attention are limited. By the time an expense is submitted, the decision has already been made – often quickly, with incomplete information and little cognitive bandwidth.

Behavioural economics describes this pattern as bounded rationality. When mental resources are constrained, people simplify decisions rather than optimise them. They rely on habits, prior approvals, and social cues instead of consulting formal policy documents. The gap between assumption and reality is reflected in the data.

From a governance perspective, this is important because expense policies aren’t operating in isolation. Instead, they’re competing with faster, more intuitive decision-making processes that often win.

Vaguery creates fragmentation, not flexibility

Many expense policies hinge on terms such as “reasonable”, “appropriate”, or “within limits”. These “legalese” buzzwords are intended to provide flexibility, but in reality, they invite ambiguity. Ambiguity forces interpretation, and interpretation is shaped by context rather than policy wording.

When boundaries are unclear, employees will start looking for guidance elsewhere: what their manager approved previously, what colleagues typically submit, or what appears acceptable within their team. Phrases like “I just submit it like this” override the written rule.

Over time, these informal cues become the “street” rules your employees – both old and new – will follow. Your policy documents may say one thing, but in the face of ambiguity, different teams will inevitably develop different interpretations of the same rules, influenced by culture, seniority, and precedent.

For finance teams, this fragmentation has tangible consequences. Inconsistent interpretation makes spending harder to forecast, harder to benchmark across departments and harder to challenge without appearing arbitrary. In plain terms, ambiguity does not allow for flexibility, and it does not reduce disputes; it simply pushes them downstream, after the money has already been spent.

Social pressure outweighs financial rules

Expense decisions are rarely confined to the consistent sphere of cold, mathematical calculations – emotions and social elements also play a part.

Choices around travel, accommodation, and client entertainment are tied to perceptions of professionalism, competence, and status. In many roles, particularly client-facing ones, employees feel pressure to meet (or exceed) unspoken benchmarks about what is “appropriate” for the situation. People use money to signal competence, generosity, seniority, or professionalism – especially around clients and travel.

Being forced to book the cheapest option can lead employees to feel as though they’re undervalued. If they have the ability to apply upgrades, this can be done with a sense of feeling like they’ve earned the right. Picking a nicer venue for a client lunch may be justified as “representing the brand” in the best possible light.

When expense policies fail to acknowledge these social dynamics, employees are left balancing formal rules against informal expectations. In these moments, the immediate risk of appearing unprofessional or out of step can feel more pressing than the abstract risk of breaching policy.

This dynamic shows up in reported behaviour. Surveys indicate that nearly one in four employees admit to having misreported or bent an expense claim, while broader reviews of improper claims suggest that around 13% involve deliberate reimbursement irregularities, often in socially sensitive categories such as travel and entertainment.

It might be easy to boil this down to opportunistic and dishonest behaviours, and while that may be the driving factor behind a small number of cases, it’s not typically the underlying issue.

Inconsistent enforcement undermines policy legitimacy

Even well-designed policies struggle when enforcement is unpredictable.

If similar claims receive different outcomes depending on who approves them, employees quickly conclude that the system is inconsistent. Once that perception takes hold, behaviour changes; claims become more defensive, more heavily justified, or disengaged altogether.

Reimbursement delays compound this effect, and when employees are regularly left out of pocket, expense processes stop feeling administrative and start feeling adversarial.

From a governance standpoint, trust functions as an informal control mechanism. When employees believe the system is fair and predictable, they are more likely to self-regulate. When trust erodes, formal rules lose authority and administrative costs increase.

Policies fall behind modern working practices

Many expense policies fail not because they are ignored, but because they are outdated.

Hybrid working, remote travel, and digital-first transactions have introduced new scenarios that older policy frameworks were never designed to address. Grey areas multiply, and employees are forced to rely on judgement rather than guidance.

At the same time, technological change has reshaped the risk landscape. Digital documentation and AI-generated receipts have made manual verification less reliable. In 2025, industry reporting found that AI-generated fake receipts accounted for around 14% of flagged fraudulent documentation, a rapid shift that legacy control processes were not built to handle.

In this context, policy failure is often a matter of misalignment rather than misconduct. Controls that do not reflect how work is actually done lose relevance, and relevance is a prerequisite for compliance.

Adding more rules often makes things worse

When expense issues arise, the instinctive response is to tighten control: more rules, more exceptions, more detailed guidance. While understandable, this approach often backfires.

Long, complex policies increase cognitive load. Faced with dense documentation, employees are less likely to consult it in real time. Instead, they rely on memory, precedent, or judgement. Attempts to cover every edge case can make everyday decisions harder rather than clearer.

Effective policies focus on clarity where it matters most: common scenarios, clear examples, and predictable outcomes. Simplicity, in this context, is not a lack of rigour but a deliberate design choice.

What makes an expense policy effective?

Expense policies work best when they are designed around real – rather than idealised – behaviour. This means recognising cognitive limits, social pressures, and the realities of modern working environments.

Clear examples outperform abstract rules, consistent enforcement builds legitimacy, and predictable reimbursement reinforces trust. Systems that support judgement, rather than relying solely on manual oversight, reduce friction and error.

Ultimately, expense policies are not just financial controls. They are signals about how an organisation balances trust, accountability, and practicality. When they align with how people actually operate, they become effective tools for cost control. When they do not, they risk becoming well-written documents that fail quietly in practice.

Read more:
Why Expense Policies Fail: A Deep Dive Into Workplace Psychology

The owner of British Airways has launched a fresh €1.5 billion share buyback after reporting record annual profits, underlining the scale of the post-pandemic turnaround in the airline industry.

International Airlines Group (IAG), which also owns British Airways, Iberia, Aer Lingus and Vueling, reported a 22 per cent rise in profit after tax to €3.34 billion for 2025.

Group revenues climbed 3.5 per cent to €33.2 billion, despite passenger numbers edging down slightly to 121.5 million compared with the previous year. The improvement was driven by stronger pricing and higher revenue per passenger rather than volume growth.

In response, the FTSE 100-listed airline group announced an 8.9 per cent increase in its dividend and unveiled a €1.5 billion share buyback programme. It follows a €1 billion buyback completed last year and adds to a growing trend of large UK corporates returning surplus cash to investors.

IAG said market conditions remained supportive, citing long-term demand growth across its core transatlantic and European markets, combined with constrained aircraft supply as manufacturers struggle with delivery delays.

“Market dynamics are compelling, long-term demand growth in our core markets and constrained supply in a consolidating industry,” the company said.

Share buybacks reduce the number of shares in circulation, increasing earnings per share and often supporting share price performance. IAG’s shares, which were trading below £1 during the depths of the pandemic, are now approaching historic highs, having previously peaked at around 470p in 2018.

The group has moved decisively from a crisis-era balance sheet to financial strength. Just over three years ago, IAG was carrying close to €20 billion of debt as international travel collapsed under Covid restrictions. Since then, it has restored profitability and significantly reduced leverage.

Luis Gallego, IAG’s chief executive, said the group’s improved profitability was underpinned by higher margins across its airline brands. Iberia delivered an operating margin of 16.2 per cent, while British Airways achieved 15.1 per cent, both historically strong levels for the group.

“Our margins are significantly better than those of many global competitors,” Gallego said.

Looking ahead, IAG expects to grow capacity by between 2 and 4 per cent annually over the next few years. However, it anticipates that supply constraints, driven by delays from aircraft manufacturers, will limit industry-wide expansion, supporting pricing power.

The North Atlantic remains IAG’s most important market, although growth has moderated. The group described the route network as increasingly mature, with future expansion likely to be in the low single digits. Demand from US travellers softened slightly during the summer peak season last year.

By contrast, IAG expects mid-single-digit growth in the South Atlantic, where it holds a strong competitive position.

Short-haul European operations, which account for more than a third of group capacity, have faced pressure from rising operating costs and weaker demand in parts of northern Europe.

Despite those headwinds, the airline group’s record profitability and enhanced shareholder returns mark a striking contrast to its precarious position during the pandemic, and reinforce investor confidence in the durability of premium transatlantic and leisure travel demand.

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IAG unveils €1.5bn share buyback after record profits at British Airways owner

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.

Read more:
Rolls-Royce warns UltraFan production could shift overseas without UK backing