The future of Britain's last military helicopter manufacturing site and approximately 3,000 skilled jobs now hangs in the balance, dependent on a critical contract decision from the Ministry of Defence. Industry sources indicate that the Italian-owned Leonardo Helicopters plant in Yeovil, Somerset, faces potential closure if the long-awaited order for new helicopters is not finalised within weeks.
A Race Against Time for Yeovil's Future
Workers at the historic former Westland factory are facing acute uncertainty. The company's 'best and final offer' for the £1bn 'new medium helicopter' programme is set to expire at the end of March. One source familiar with the negotiations stressed the urgency, stating that Leonardo needed confirmation of the award by January to meet the contract's various deadlines. A delay beyond March risks collapsing the entire process, as the quoted price is tied to current agreements with Leonardo's supply chain.
The contract, for which Leonardo is the sole bidder, was launched in February 2024. The continued hold-up has prompted severe warnings from the company's top leadership. In a letter to Defence Secretary John Healey in December, Leonardo's Chief Executive, Roberto Cingolani, described the deal as 'a cornerstone' of the firm's UK strategy. He explicitly warned that any delay or cancellation would force a 'reevaluation of Leonardo's UK presence', threatening not just helicopter manufacturing but also its investments in UK electronics and cyber security divisions.
Political Pressure Mounts Amid Defence Spending Pledges
The stalemate is particularly striking given the government's repeated pledges to bolster defence spending in response to heightened global threats, notably from Russia. The defence industry has grown increasingly frustrated waiting for the government's promised defence investment plan, which was anticipated before Christmas.
Sharon Graham, General Secretary of the Unite union, voiced the anxiety of the workforce, saying: 'Leonardo workers in Yeovil are looking over their shoulders wondering where the next order will come from while the government dithers and delays. This uncertainty must end by confirming the order for medium-lift helicopters.'
MoD Response and the Stakes for UK Sovereignty
In response to the crisis, an MoD spokesperson highlighted record defence budgets, stating: 'The UK defence budget is rising to record levels as this government delivers the biggest boost to defence spending since the cold war, totalling £270bn this parliament alone.' They cited growing Russian aggression and operational demands, adding that officials are 'working flat out' on a new defence investment plan to fix an 'outdated, overcommitted, and underfunded' programme.
However, for the highly skilled workforce in Somerset, these assurances offer little immediate comfort. The potential closure of the Yeovil site would not only be a devastating blow to the local economy but would also mark the end of the UK's sovereign capability to design and build military helicopters. The coming weeks will determine whether this critical pillar of British defence manufacturing can be preserved.
