Chancellor of the Exchequer Rachel Reeves is poised to approve a significant £1 billion contract with helicopter manufacturer Leonardo, securing the future of its plant in Yeovil, Somerset. This decision comes after the project faced uncertainty due to deprioritisation in the Ministry of Defence's investment plans.
Government Intervention Secures Deal
The Treasury is preparing to finalise the agreement to purchase a new fleet of defence helicopters, with Chancellor Reeves and Prime Minister Sir Keir Starmer stepping in to ensure the deal proceeds. A Treasury source emphasised Reeves' commitment to national security and job creation, stating, "Rachel cares about keeping the country safe and driving jobs in the UK because our security and economic growth are fundamentally connected."
Plant in Limbo Until Now
Leonardo's Yeovil facility, which employs approximately 3,300 staff and works with nearly 12,000 suppliers, had been awaiting this crucial government decision. As the UK's only end-to-end rotary wing manufacturer, the company's future was at risk without the contract approval. The bid was set to expire by the end of Sunday, adding urgency to the situation.
Union Celebrates "Tremendous Victory"
Trade union Unite, representing thousands of aerospace and defence workers, hailed the contract as a major win for the industry and its members. General secretary Sharon Graham called it a "tremendous victory" for jobs, skills, and national security, though she criticised the prolonged process that left workers uncertain until the last minute.
Background and Cancelled Visit
This development follows reports that Defence Secretary John Healey's planned visit to the Yeovil plant to award the contract was cancelled on Thursday. Leonardo and the Ministry of Defence have declined to comment on the matter, but the approval signals a boost for UK manufacturing and defence capabilities.
