Reaction Engines, the British hypersonic aviation pioneer, has crashed into administration after weeks of talks with potential backers failed to result in a rescue deal.
Sky News has learnt that 173 of the company’s 208 staff were made redundant on Thursday morning by PricewaterhouseCoopers (PwC), the administrators.
The collapse of a company which makes advanced cooling technology for engines also threatens to create a headache for a quartet of Formula One racing teams which use engines supplied by Mercedes-Benz.
Talks to secure roughly £20m in additional funding to keep Reaction Engines alive had initially focused on the UAE’s Strategic Development Fund (SDF), the investment arm of the UAE’s Tawazun Council.
However, these began to falter earlier this month, with strategic shareholders BAE Systems and Rolls-Royce Holdings unwilling to provide enough capital to bail it out.
In a statement on Thursday, Sarah O’Toole, joint administrator and partner, PwC, said: “It’s with great sadness that a pioneering company with a 35-year history of spearheading aerospace innovation has unfortunately been unable to raise the funding required to continue operations.
“We know this is a deeply uncertain and unsettling time for the Company’s talented and dedicated employees.
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“We are committed to providing them with all the necessary support at this time.”
Sky News revealed earlier this week that administrators were expected to be appointed on Thursday.
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Under the earlier discussions, SDF would have emerged as the single-biggest investor in Reaction Engines, which has developed cooling technology which is aimed at powering aircraft to Mach 25 – or 19,000 miles per hour – outside the Earth’s atmosphere.
According to Reaction Engines’ most recent update to shareholders, it grew its commercial revenues by more than 400% last year and is understood to have a strong pipeline of contract and R&D opportunities.
In January last year, Reaction Engines announced that it had raised £40m of additional equity, taking the total sum it had banked from investors to roughly £150m.
Founded in 1989, the company is chaired by Philip Dunne, a former defence minister.
“The company has primarily been funded by grants and equity fundraises, given its R&D focus,” PwC said.
“The company had been pursuing opportunities to raise further funds, but unfortunately, these attempts were unsuccessful.
“Consequently, the directors have been left with no alternative but to place the company into administration.
Reaction Engines’ remaining employees will be retained temporarily at its Oxfordshire base “to complete a number of existing orders and support in winding down operations,” PwC added.
Sir Keir Starmer will launch his plan to deliver millions more appointments across the NHS and to reduce waiting times to 18 weeks over the next five years.
The prime minister will lay out how greater access to community diagnostic centres (CDCs) will help deliver up to half a million more appointments, alongside 14 new surgical hubs and three expanded existing hubs.
Up to a million appointments could be freed up by giving patients the choice to forego follow-up appointments currently booked by default, the government says.
Overall, the plan will involve a drive to deliver two million extra appointments by the end of next year.
The aim of the reforms is that by the end of March 2026, an extra 450,000 patients will be treated within 18 weeks.
Figures published by NHS England last month showed an estimated 7.54 million treatments were waiting to be carried out at the end of October – the lowest figure since March 2024.
According to the Institute for Fiscal Studies (IFS), the last time the NHS met the target of 92% of patients receiving treatment within 18 weeks was in 2015.
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The reforms for England will also see an overhaul of the NHS app to give patients greater choice over where they choose to have their appointment and will also provide greater detail to the patient including their results and waiting times.
The first step in the digital overhaul will be completed by March 2025, when patients at over 85% of acute trusts will be able to view their appointment details via the NHS app, the government said.
They’ll also be able to contact their provider and receive updates, including how long they are likely to wait for treatment.
In the effort to free-up one million appointments, patients will be given more choice over non-essential follow up appointments, while GPs will also be given funding to receive specialist advice from doctors before they make any referrals.
Sir Keir is expected to say: “This government promised change and that is what I am fighting every day to deliver.
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1:37
Streeting: ‘We’re going as far and as fast as we can’
“NHS backlogs have ballooned in recent years, leaving millions of patients languishing on waiting lists, often in pain or fear. Lives on hold. Potential unfulfilled.
“This elective reform plan will deliver on our promise to end the backlogs. Millions more appointments. Greater choice and convenience for patients. Staff once again able to give the standard of care they desperately want to.”
The CDCs will be open 12 hours a day and seven days a week wherever possible. Patients will be able to access a broader range of appointments in locations that are more convenient for them and which may speed up the pace of treatment.
There have been some concerns that giving patients choice of the location of their treatment may see some hospitals in greater demand than others – but Health Secretary Wes Streeting said this was a “matter of principle”.
“When I was diagnosed with kidney cancer, I was inundated with colleagues in parliament who were asking who my surgeon was, whether I was going to the best place for treatment, whether I was exercising my right to choose in the NHS,” he said.
“Now, it turned out I had one of the best kidney cancer surgeons in the country assigned to me by the NHS, so I was lucky.
“But frankly, someone like my mum as a cleaner should have as much choice and power in the NHS as her son, the health secretary.”
NHS chief executive Amanda Pritchard said the government’s plan was an “ambitious blueprint”.
“The radical reforms in this plan will not only allow us to deliver millions more tests, appointments and operations, but do things differently too – boosting convenience and putting more power in the hands of patients, especially through the NHS app.”
An amber warning for snow and ice, with the risk of freezing rain, covers most of Wales and central England until midday on Sunday.
Freezing rain, which makes up what are commonly known as ice storms in North America, is a rarity in the UK because the conditions for it are quite specific, according to the Met Office.
But what is it and how is it different to snow?
Freezing rain is rainfall that has become “supercooled” as it falls from the sky.
It starts when snow, ice, sleet or hail high up in the atmosphere melts into rain when it falls through the layers of warmer air below.
If the rain then passes through a sub-zero layer of air just above the ground, it can remain liquid and instead become “supercooled”. This is the key to freezing rain.
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Supercooled water will freeze on impact – forming a clear layer of ice on cold surfaces such as trees, roads and power lines.
Why is it dangerous?
It’s once it hits the surface and turns to ice that it canpose a real threat.
The ice is very clear, often referred to as black ice, because it is so difficult to see, making it treacherous for pedestrians and drivers.
Sky News meteorologist Kirsty McCabe explains: “The supercooled rain hits the ground and freezes instantly on impact, and that creates a thin layer of ice, also known as glaze, and it’s clear, so you can’t see the ice, which makes it really treacherous.”
If it hits power lines or tree branches, depending on how much rain there has been, the weight of the ice can cause them to break off because they can’t support the weight.
It can also make it difficult to open your car door if there is enough of it.
From 6pm on Saturday to midday on Sunday an amber warning for snow and ice, with the risk of freezing rain, covers most of Wales and central England, including the Midlands and Liverpool and Manchester in the North West.
But McCabe says it’s Wales where people should be particularly wary of freezing rain.
What precautions should people take?
The best thing people can do is take extra care when travelling. As it is so hard to see, it’s difficult to judge just how icy road surfaces are.
The RAC says freezing rain is arguably the most treacherous of all conditions for motorists.
They urge people not to drive unless necessary, but say those who do need to should check they have plenty of fuel and oil and check their tyre treads.
They also encourage drivers to make sure their lights are working and check they have screenwash.
The King is deeply saddened by the death of a British man who was killed in the attack in New Orleans on New Year’s Day – amid reports he was the stepson of an ex-royal nanny.
Sky News understands the King was made aware of Mr Pettifer’s death through official channels, was deeply saddened, and has been in touch with the family to share personal condolences.
The 31-year-old’s family said they were “devastated” by his death.
“He was a wonderful son, brother, grandson, nephew and a friend to so many,” the family said in a statement.
“We will all miss him terribly. Our thoughts are with the other families who have lost their family members due to this terrible attack. We request that we can grieve the loss of Ed as a family in private.”
New Orleans’ coroner said the preliminary cause of death for Mr Pettifer was blunt force injuries.
Fourteen people were killed and dozens injured when 42-year-old army veteran Shamsud-Din Jabbar’s rented truck rammed into people in New Orleans’ famous Bourbon Street in the early hours of New Year’s Day.
Jabbar was killed in a shootout with police.
The Federal Bureau of Investigation (FBI) said the attack was “premeditated” and an “evil” act of terrorism, and added Jabbar was “100% inspired by ISIS”, also known as Islamic State.
The preliminary cause of death for all the victims was blunt force injuries, according to the New Orleans coroner.
The coroner has identified most of those killed in the attack, with efforts continuing to identify the final female victim.
• Edward Pettifer, 31, from Chelsea, west London • Andrew Dauphin, 26, from Montgomery, Alabama • Kareem Badawi, 23, from Baton Rouge, Louisiana • Brandon Taylor, 43, from Harvey, Louisiana • Hubert Gauthreaux, 21, from Gretna, Louisiana • Matthew Tenedorio, 25, from Picayune, Mississippi • Ni’Kyra Dedeaux, 18, from Gulfport, Mississippi • Nicole Perez, 27, from Metairie, Louisiana • Reggie Hunter, 37, from Prairieville, Louisiana • Martin Bech, 27, from New York City, New York • Terrence Kennedy, 63, from New Orleans, Louisiana • Elliot Wilkinson, 40, from Slidell, Louisiana • William DiMaio, 25, from Holmdel, New Jersey
An Islamic State (IS) flag, weapons, and what appeared to be an improvised explosive device (IED) were found in the vehicle used in the attack, the FBI said.
The suspect posted five videos on social media before the rampage in support of IS, the agency added.
In his first clip, Jabbar said he was planning to harm his own family and friends, but was concerned headlines would not focus on the “war between the believers and disbelievers”, said Christopher Raia, deputy assistant director of the FBI’s counter-terrorism division.
Jabbar also joined IS “before this summer”, and provided a will, the FBI chief said.
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The half-brother of the attack suspect said ‘this wasn’t the man I knew’
In an interview with a Texas-based TV station, owned by Sky News’ partner network NBC News, Jabbar’s younger half-brother said he was thinking about all those impacted by the attack.
Abdur-Rahim Jabbar said: “This is a tragedy. We’re all grieving about this.”
The suspect was a Muslim, with his sibling adding: “This wasn’t the man I knew. This wasn’t the father, the son that I knew.
“And that also, this isn’t any representation of Islam or Muslims or the Muslim community.”