Rachel Reeves to approve £1bn deal for military helicopters in Yeovil

Reports say Chancellor Rachel Reeves will sign a £1bn contract with Leonardo to build new medium military helicopters in Yeovil, a move reported to protect about 3,000 jobs; the Ministry of Defence says no final procurement decisions have yet been confirmed.

Reports indicate Chancellor Rachel Reeves will approve a £1bn contract for Leonardo to build new medium military helicopters at the Yeovil factory. The site is the former Westland plant in Yeovil, Somerset, and workers had feared closure if no order arrived before March. Leonardo was reportedly the sole bidder after Lockheed Martin and Airbus withdrew. The contract would replace the Royal Air Force's ageing Puma helicopters and follows delays linked to a funding gap in defence planning. Key details: - The chancellor is reported to be expected to sign a £1bn contract with Leonardo to build the new medium battlefield helicopter in Yeovil. - Leonardo was the only bidder for the programme, which was launched in February 2024 after other firms pulled out. - The deal is reported to be linked to preserving about 3,000 manufacturing jobs and avoiding a threatened closure of the Yeovil facility. - Reports say the decision followed a last-minute reversal from the Treasury and uncertainty that led the defence secretary to cancel a factory visit. - An MoD spokesperson stated the new medium helicopter programme is ongoing and that no final procurement decisions have yet been made. Summary: If confirmed, the reported agreement would secure work at the Yeovil plant and advance plans to replace the RAF's Puma helicopters. The timing came after repeated delays in funding decisions and before Leonardo's offer was due to expire. Undetermined at this time.