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Reeves Poised to Approve £1 Billion Leonardo Helicopter Deal to Safeguard Yeovil Jobs

The move follows MoD deprioritisation of the project ahead of a March 1 bid expiry.

Overview

  • Treasury sources say the chancellor is preparing to sign off a contract for 23 medium‑lift helicopters, which would avert closure risks at Leonardo’s Yeovil plant.
  • The decision would secure roughly 3,000 on‑site jobs at the UK’s last end‑to‑end military helicopter manufacturer, with thousands more supported in the supply chain.
  • Reports indicate Rachel Reeves and Prime Minister Keir Starmer intervened after the Defence Investment Plan pushed the programme down the spending queue.
  • The prospective deal is valued at up to £1 billion and represents a scaled purchase from an earlier 2022 outline that envisaged 44 aircraft.
  • The Ministry of Defence says no decision has been made, following a cancelled visit by Defence Secretary John Healey that had been expected to announce the award.