UK finance minister Reeves will approve deal to buy 23 helicopters from Italy's Leonardo - BBC

UK finance minister Reeves will approve deal to buy 23 helicopters from Italy's Leonardo - BBC

UK Awaits Final Decision on £1 Billion Helicopter Procurement with Leonardo

The UK government is poised to announce a decision on its New Medium Helicopter (NMH) program, with Leonardo Helicopters—the sole remaining bidder— positioning itself to secure a £1 billion contract for 23 medium helicopters. The deal, which has faced prolonged delays, is now expected to be finalized by the end of March 2026. Leonardo CEO Roberto Cingolani recently indicated that clarity on the procurement would emerge "within one or two days," signaling an imminent resolution.

Leonardo's Yeovil factory, the UK's only helicopter manufacturing site, has emphasized the economic stakes: 3,000 jobs hang in the balance. The company has maintained "good dialogue" with the government, with Vice President Adam Wardrope expressing cautious optimism following recent discussions. However, Unite union representative Ben Clarke highlighted growing concerns among workers, noting that prolonged uncertainty risks skilled personnel leaving the site.

The NMH contract aims to modernize the UK's defense capabilities, with Leonardo's AW149 model as the sole contender. The procurement aligns with broader government efforts to "fundamentally rewire defence" and enhance deterrence. Meanwhile, Leonardo recently unveiled the Proteus, the UK's first autonomous full-size helicopter, designed for missions such as anti-submarine warfare. While the NMH deal focuses on conventional platforms, the Proteus underscores Leonardo's push into next-generation aerospace technologies.

Defense spending remains a priority for the Labour Party, with Sir Keir Starmer reportedly considering significant budget increases. A decision on the NMH program would not only secure Yeovil's industrial future but also reinforce the UK's strategic partnerships in critical defense sectors.

As the deadline approaches, stakeholders await formal confirmation from the Ministry of Defence, with implications extending to supply chains, regional employment, and national security planning.