UK Government Approves £1 Billion Leonardo Helicopter Deal, Saving 12,000 Jobs
Chancellor Rachel Reeves has given the green light to a critical £1 billion contract with Italian defence company Leonardo, securing the future of Britain's last military helicopter manufacturing site. The deal, which was finalised just days before a 1 March deadline, will safeguard approximately 3,000 jobs at Leonardo's facility in Yeovil, southwest England, and an additional 9,000 positions across the supply chain.
Preventing Factory Closure
The contract effectively prevents the closure of the Yeovil factory, which Leonardo had threatened to shut down without a new agreement. A Treasury source revealed that Ms Reeves felt compelled to intervene to ensure that UK defence spending actively protects British business interests and employment. This move underscores the government's commitment to maintaining domestic manufacturing capabilities in the defence sector.
Contract Details and Adjustments
Under the approved contract, the UK will acquire 23 medium-lift support helicopters. This number is significantly fewer than the 44 helicopters originally outlined in a 2022 government notice, reflecting adjustments made during negotiations. Despite the reduction in quantity, the deal represents a substantial investment in national defence infrastructure and industrial stability.
The agreement not only secures immediate jobs but also supports long-term economic resilience in the region. By backing this contract, the government aims to bolster the UK's defence industry while providing crucial job security for thousands of workers and their families.
