'World-class' AW149 helicopters to bolster RAF as huge £1bn contract signed amid delays 'until the 11th hour'

The government has announced a £1bn contract with helicopter maker Leonardo, with AW149 being built to supersede older RAF and Army capabilities. Further investment in Proteus will also be made, the UK’s first autonomous un-crewed air system.

Defence secretary John Healey said it was a “major vote of confidence in British industry”, with 3,300 jobs secured. He added: “This defence investment works for Britain on every level.

“It strengthens our armed forces, secures thousands of skilled British jobs, and sets up big export opportunities. It is a major vote of confidence in British industry, workers and innovation. It backs British jobs and security today and makes the UK a pace-setter in un-crewed, technology and innovation for tomorrow.”

Talks to finalise the agreement stalled due to long delays in publishing the Defence Investment Plan (DIP). Due to be published in the autumn of last year, it would set out where funds would be allocated for the armed forces.

Leonardo, an Italian firm with a long history of building helicopters, threatened to close its factory in Yeovil, Somerset, due to persistent delays in finalising an agreement. The issue was raised in parliament on multiple occasions, with the government’s previous stance being to wait until the DIP was published.

Jobs have now been secured, as international orders for military helicopters from the company’s facility could see more than £15bn in exports over the next 10 years. This also has a positive knock-on effect to smaller defence firms in the Portsmouth area and across the country.

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Chancellor Rachel Reeves said: “In an uncertain world, we are backing Britain’s world-class defence sector to both keep Britain safe and drive economic growth. This historic partnership not only supports British jobs and security today, but positions the UK and its allies at the forefront of the next generation of defence and autonomous systems tomorrow.”

Nigel Colman, managing director of helicopters UK at Leonardo, added: “Leonardo is committed to providing the UK armed forces with a world-class medium lift helicopter based on our leading AW149 platform that will serve our military personnel for many years to come. The Government’s procurement of the AW149, as well as the continued investment in autonomy, will support more than 3,300 jobs in Yeovil, the home of British helicopters, as well as 12,000 across the UK supply chain.”

The Unite union repeatedly criticised the delays in publishing the DIP and organising other projects. Aerospace workers held a large demonstrations outside Number 10 Downing Street last week. General secretary Sharon Graham said prioritising British defence jobs and companies is vital for national security.

She added: “The Leonardo contract is a tremendous victory for Unite members in Yeovil and across the aerospace sector. Without their commitment, hard work and dedication, it would not have been signed. f course, we are pleased that the Rachel Reeves has now listened to Unite on this issue. However, it took way too long to get this done, and we still have to question why workers were left in the dark until the 11th hour.”