Government Awards £1 Billion Contract to Leonardo, Securing Thousands of UK Jobs

The UK Government has awarded a £1 billion contract to helicopter manufacturer Leonardo, a move that secures approximately 3,300 British jobs, many of them in Somerset. The Italian company’s Yeovil facility, which had faced uncertainty pending the contract decision, will now continue operations with renewed confidence.

Under the contract, Leonardo will supply the UK armed forces with 23 new medium-lift AW149 helicopters. Additionally, the deal includes significant investment in Proteus, the UK’s first autonomous uncrewed air system, recently flown for the first time and developed by Leonardo.

Defence Secretary John Healey hailed the contract as a “major vote of confidence in British industry,” emphasizing its benefits in strengthening the Armed Forces, preserving skilled jobs, and opening up export opportunities. He highlighted that Yeovil will become the global hub for Leonardo’s military helicopter production, reinforcing the UK’s position in defence technology and innovation.

Chancellor Rachel Reeves described the contract as a “historic partnership,” underscoring its role in safeguarding national security and driving economic growth amid global uncertainties. She noted that it positions the UK and its allies at the forefront of next-generation defence and autonomous systems.

The Ministry of Defence projects that international orders for military helicopters from the Yeovil facility could generate over £15 billion in exports over the next decade. Nigel Colman, Managing Director of Helicopters UK at Leonardo, affirmed the company’s commitment to delivering world-class helicopters based on the AW149 platform, supporting 3,300 jobs in Yeovil and 12,000 across the UK supply chain.

This contract aligns with the Government’s strategy to increase defence spending to 2.6% of GDP by 2027, reinforcing the UK’s long-term commitment to defence capability and industrial resilience.