Rolls-Royce's self-reliance has given the chancellor a boost | Nils Pratley

The company's spending cuts bolster the government message that bailouts are a last resort

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Rishi Sunak will be delighted. The chancellor told the aviation industry that government-backed bailouts would only be considered "as a last resort", and here comes engine-maker Rolls-Royce to demonstrate what it can achieve under its own steam.

Rolls' shareholders should also be pleased. Monday's dividend suspension is bad news for them, but not half as bad as a rights issue would have been. The latter was avoided (at least for now). Instead, investors got a reassuring display of the company's ability to absorb financial pain by borrowing more and spending less.

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