The UK Government is poised to approve a £1 billion contract with Italian helicopter manufacturer Leonardo, ending a period of uncertainty for thousands of employees at its Yeovil plant in Somerset.
Leonardo’s UK facility, the nation’s sole end-to-end rotary wing manufacturer, had been in limbo awaiting the Government’s decision on awarding a key defence helicopter contract. The Treasury is now preparing to finalize the deal, following concerns that the Ministry of Defence had downgraded the project in its Defence Investment Plan.
Chancellor Rachel Reeves, alongside Labour leader Sir Keir Starmer, intervened after reports emerged that Defence Secretary John Healey’s planned visit to Yeovil to announce the contract was unexpectedly canceled. The Chancellor emphasized the importance of the deal, stating that national security and economic growth are deeply interconnected and that she would not allow the contract to collapse under her watch.
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Leonardo employs around 3,300 people at the Yeovil plant and collaborates with nearly 12,000 suppliers across the UK. Chief Executive Roberto Cingolani had previously warned that failing to secure the contract would jeopardize the company’s future in the UK.
The company is the sole bidder, with the bid set to expire at the end of the weekend unless approved.
Trade union Unite, representing thousands of aerospace and defence workers, praised the contract award as a “tremendous victory” for the industry, the company, and its workforce. Unite General Secretary Sharon Graham highlighted the union’s year-long campaign advocating for British defence procurement, emphasizing its critical role in preserving jobs, skills, and national security.
While welcoming Chancellor Reeves’s support, Graham voiced concern over the lengthy delay and the uncertainty faced by workers until the eleventh hour.
Both Leonardo and the Ministry of Defence declined to comment on the matter.