Chancellor Rachel Reeves is expected to approve a £1bn contract with Italy's Leonardo to build military helicopters in Yeovil, Somerset, securing around 3,000 manufacturing jobs, according to reports. The deal, which will replace the RAF's ageing Puma helicopters, comes after months of uncertainty over the future of the former Westland factory.
Leonardo was the sole bidder for the UK's 'new medium helicopter' contract, launched in February 2024, after Lockheed Martin and Airbus withdrew. The contract was due to expire on Sunday, prompting a last-minute reversal from the Treasury, which had appeared likely to reject it until Friday afternoon.
Defence Secretary John Healey cancelled a planned visit to the Yeovil factory on Thursday amid the uncertainty. A source said Treasury officials confirmed the green light later on Friday, with one stating: 'Rachel cares about keeping the country safe and driving jobs in the UK because our security and economic growth are fundamentally connected.'
The Unite union welcomed the decision, with General Secretary Sharon Graham calling it 'a tremendous victory for Unite members in Yeovil and across the aerospace sector.' However, she criticised the delays, saying workers were 'left in the dark until the 11th hour.'
The Ministry of Defence declined to confirm the decision, stating the programme was ongoing and no final procurement decisions had been made. The deal had been delayed due to a funding gap that also held up the publication of the defence investment plan.
In December, Leonardo's CEO Roberto Cingolani threatened to scrap UK investment if the contract was not awarded, calling it 'a cornerstone' of the company's strategy. The new helicopters will replace the Puma fleet, which has been in service since the 1970s.
