US PRESIDENT Barack Obama is committed to axing an aerospace project that would create 100 new jobs and £35million investment in East Lancashire, the White House has said.

President Obama is reluctant to grant state funding to the F136 fighter jet engine, a partnership between US giant GE and Rolls-Royce.

The F136 would power the world-leading F-35 Lightning II aircraft, but is up against a rival engine made by American firm Pratt and Whitney.

Aerospace bosses say having two competing engines will reduce costs and improve efficiencies.

But President Obama is determined not to grant government cash to the Rolls-GE engine as he struggles with a shortage of money.

However, it is understood that if given the go-ahead, the F136 would create 100 new jobs at Barnoldswick, and a new £35million extension where workers would manufacture fan blades for the engine.

And Burnley MP Gordon Birtwistle has highlighted the need for continuing development of military aviation.

He said: “I hope that the European Union, in collaboration with all the aerospace companies, is starting to consider the next combat plane that will have to be developed after Eurofighter finishes."