Rachel Reeves to give go-ahead' for 1bn military helicopter deal

"Workers had feared the company would follow through on threats to close the facility at the end of March if the government failed to place an order for new helicopters in time. Leonardo was the only bidder for the UK's 1bn new medium helicopter contract that was launched in February 2024, after the US aerospace company Lockheed Martin and Europe's Airbus pulled out."

"The decision to agree the contract, first reported by the Financial Times, came just before Leonardo's offer was set to expire on Sunday. The contract decision appeared to come after a last-minute reversal from the Treasury. A source with knowledge of the matter said that even until early Friday afternoon, it had appeared the contract would be rejected."

"Rachel cares about keeping the country safe and driving jobs in the UK because our security and economic growth are fundamentally connected. The Unite general secretary, Sharon Graham, said the contract was a tremendous victory for Unite members in Yeovil and across the aerospace sector."

Rachel Reeves has approved a £1 billion contract with Leonardo, the Italian owner of the Westland factory in Yeovil, Somerset, to manufacture new battlefield helicopters for the Royal Air Force. The deal saves approximately 3,000 manufacturing jobs at the historic facility, which faced closure threats if no government order materialized by March. Leonardo was the sole bidder for the medium helicopter contract after Lockheed Martin and Airbus withdrew. The new aircraft will replace the RAF's aging Puma helicopter fleet, in service since the 1970s. The Treasury's approval came as a last-minute reversal, with the contract decision occurring just before Leonardo's offer expired on Sunday.

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