What is the Leonardo helicopter contract?

It is a planned £1bn UK order for 23 new medium helicopters assembled at Leonardo’s Yeovil site. The deal refreshes utility lift for missions like transport, medical support, and training. It also anchors UK industrial capacity and gives planners near-term capability while longer-term Defence Investment Plan priorities are set.

How many jobs are affected at Yeovil and across the UK?

The move secures thousands of UK aerospace jobs, with Yeovil at the centre for assembly, testing, and support. It also sustains roles in the wider supply chain, including avionics, composites, software, and logistics. Local apprenticeships and technician upskilling should improve as firms plan multi-year hiring and training.

Why did Rachel Reeves intervene in the decision?

Reports indicate the Chancellor acted to prevent capability gaps and large-scale job losses while aligning Treasury decisions with MoD needs. The intervention accelerated approval, signalling support for UK industry content and near-term readiness. Public sources described late engagement that helped move the deal forward and reduce uncertainty for Yeovil.

How does this relate to the UK new medium helicopter requirement?

The order aligns with the UK new medium helicopter objective to replace aging fleets with a common, supportable platform. A domestic build gives planners clearer through-life costs, training synergies, and better availability. It also supports budget planning in the Defence Investment Plan by locking in near-term delivery and support activity.

Law and Government

February 28: UK Set to Approve £1bn Leonardo Helicopter Contract

ByHuzaifa Zahoor February 28, 2026February 28, 2026

Britain is set to approve the Leonardo helicopter contract, a £1bn order for 23 new medium helicopters from Leonardo’s Yeovil plant. A last-minute intervention by Chancellor Rachel Reeves pushed the deal forward, securing thousands of UK aerospace jobs and signalling support for defence industry capacity. We outline what this purchase means for Yeovil, the defence budget, and near-term planning ahead of the Defence Investment Plan, and why clarity on delivery, training, and maintenance matters for readiness. For investors, government buying signals predictable cash flows for the contractor and tangible work for domestic suppliers.