Defence Secretary John Healey has held urgent discussions with the chief executive of Italian defence contractor Leonardo amid growing concerns for thousands of jobs at a military helicopter factory in Somerset.
Critical Meeting Over £1bn Contract
Sky News has learned that Mr Healey met with Roberto Cingolani, Leonardo's CEO, on Friday to address the ongoing tender process for the Ministry of Defence's New Medium Helicopter programme. This £1 billion contract has become a critical issue that could determine the future of Leonardo's Yeovil plant.
The Italian defence giant is competing to secure the substantial contract to build medium-lift military helicopters for the British armed forces. However, despite the government's initial aim of finalising the deal by the end of last year, no decision has been announced, creating significant uncertainty.
Thousands of Jobs at Stake
The potential implications of the contract decision are substantial. Approximately 3,000 people are directly employed at the Yeovil facility, with an additional 9,000 supply chain jobs reportedly dependent on the site's continued operation.
In a letter to the defence secretary in December, Mr Cingolani warned that Leonardo's future investment in Britain could be jeopardised if the company fails to win the contract. "Any delay or cancellation in the programme award... would force a re-evaluation of Leonardo's UK presence, including investment in electronics and cyber security divisions," he wrote, according to reports in The Daily Telegraph.
Cabinet Disagreement Over Sovereign Capability
The situation has reportedly sparked disagreement within the Cabinet. The Sunday Times revealed last weekend that a row had erupted over the tender process, with Treasury officials questioning whether Britain needs to maintain sovereign military helicopter manufacturing capability given the evolving nature of modern warfare.
This internal debate adds another layer of complexity to the procurement decision, highlighting tensions between maintaining domestic defence manufacturing and cost considerations.
Government Response and Ongoing Uncertainty
A Ministry of Defence spokesperson stated: "The UK's New Medium Helicopter programme is ongoing and no final procurement decisions have yet been made. That outcome will be confirmed in due course."
The MoD declined to comment specifically on Friday's meeting between Mr Healey and Mr Cingolani, maintaining the confidentiality of their discussions while acknowledging the programme's continued progression.
The uncertainty surrounding this major defence contract continues to cast a shadow over the future of British helicopter manufacturing and the thousands of workers whose livelihoods depend on the Yeovil facility's survival.
