MoD accused of "holding back world class industry" as delays to RAF helicopter contract hits "brilliant" firms
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The government have been accused of stifling British talent as delays continue to hit a major RAF contract.
Doubts have been cast on the New Medium Helicopter (NMH) programme, which could impact businesses across the UK and in Gosport if it falls through. Minister for defence readiness and industry, Luke Pollard, insisted the Ministry of Defence (MoD) “will not be timed out” during a grilling in the House of Commons on Monday (January 12).
Leonardo Helicopters in Yeovil, Somerset, is the only bidder for the £1bn contract. Despite being opened for competition in February 2024 under the previous government, the MoD has not confirmed the deal with the firm. Threats have been made to shut down the UK’s last military helicopter factory if it isn’t finalised.
Dame Caroline Dinenage believes the MoD’s dithering and delays on prime contracts directly impacts the ecosystem of “brilliant” businesses underneath. She added that StandardAero in Fleetlands has extensively support Leonardo in the past.
“They’re a key player in the country’s defence rotary wing history,” the Conservative MP added. “Does the minister see the delay in this decision is holding back our world class industry, and delivers uncertainty to key companies in our country and all the people they employ?”
Mr Pollard, Labour, responded: “There’s important defence companies in her constituency and across the country. We continue to place contracts with the defence industry, over 1000 since the general election, over 80 per cent with UK firms. It’s a continuation of our attempt to renew our armed forces.
“I entirely understand the argument she’s making, that we want to see more investment and certainty. When the defence investment plan is published, shortly I hope that will provide clarity on what the kit is that we’re buying, in what order, and in what sequence. That will support the growth of British businesses, large and small.”
The NMH programme was set up to build up to 44 medium-lift support helicopters for the RAF and Army. They will replace several aircraft, including the Westland Puma HC2. Chief of Defence Staff, Air Chief Marshal Sir Richard Knighton, confirmed to the defence select committee that there has been a capability gap since Puma went out of service in March 2025.
After initial competition from Lockheed Martin with its Black Hawk aircraft - which would have brought sub-contracted engineering roles to Gosport - Leonardo was the only company to bid with its AW149 aircraft. A lack of clarity has now cast doubt on jobs in the company.
Adam Dance, Liberal Democrat MP for Yeovil, said the current bid “will not be sustainable past March of this year”, and if the contract is not awarded, more than 3,000 manufacturing roles will be lost. The Liberal Democrat said this would also have a knock-on effect on 12,000 jobs in the regional supply chain, and would mean a £320 million hit to the local economy.
He added: “We also lose our country’s ability to produce our own helicopters end to end, here in the UK, at a stage of serious global tensions and insecurity.” Mr Pollard said the final decision on the award will be made in the Defence Investment Plan (Dip), which has been delayed since the autumn last year.
The minister said he spoke to Leonardo UK’s chief executive and managing director of Leonardo helicopters before speaking in parliament, and stressed the firm remains “an important strategic partner”.
He added: “We are working flat out to deliver the DIP, which will deliver the best kit and technology into the hands of our frontline forces, and importantly, invest in and grow the UK economy. It will be published as soon as possible, and is backed by the Government’s largest sustained increase in defence investment since the end of the Cold War, spending £270 billion on defence in this Parliament alone.”