UK authorities set to approve new Leonardo navy deal, saving hundreds of jobs

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Your assist makes all of the distinction. Learn extra Chancellor Rachel Reeves is poised to award a vital contract to Italian defence firm Leonardo, securing the way forward for Britain's final navy helicopter manufacturing web site and safeguarding 3,000 jobs.

A Treasury supply confirmed on Friday that the deal will stop the closure of Leonardo's Yeovil facility in southwest England, which the agency had threatened with no new settlement.

The deal, price as much as £1 billion, had confronted uncertainty simply days earlier than a 1 March deadline.

A Treasury supply indicated Ms Reeves felt compelled to intervene, guaranteeing UK defence spending protects British enterprise and employment.

"She wasn't going to let this deal collapse below her watch," the supply added.

It's understood Chancellor Rachel Reeves and Sir Keir Starmer had chosen to intervene in response to the Ministry of Defence deprioritising the challenge as a part of the Defence Funding Plan.

The accredited contract will see 23 medium-lift assist helicopters acquired, fewer than the 44 initially outlined in a 2022 authorities discover.

A spokesperson for Leonardo declined to remark.

<img src="https://static.independent.co.uk/2026/02/27/15/52/FILE-PHOTO-Malta-International-Airshow-flying-display-in-Qawra-9vq6lf3q.jpeg" srcset="https://static.independent.co.uk/2026/02/27/15/52/FILE-PHOTO-Malta-International-Airshow-flying-display-in-Qawra-9vq6lf3q.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/02/27/15/52/FILE-PHOTO-Malta-International-Airshow-flying-display-in-Qawra-9vq6lf3q.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Leonardo helicopters are made at its base in Yeovil, England" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Leonardo helicopters are made at its base in Yeovil, England (REUTERS) A separate supply informed Reuters Leonardo's tender provide expires on 1 March, including that additional talks between the federal government and Leonardo have been probably within the coming days.

Sky Information had reported earlier that defence minister John Healey had been on account of go to the manufacturing unit in Yeovil on Thursday to announce the deal however pulled out as a result of the finance ministry had but to signal it off.

The federal government has beforehand mentioned it wanted to finalise its defence funding plan earlier than it may award the helicopter contract.

That plan has been delayed from the autumn amid media hypothesis a couple of 28 billion pound ($38 billion) gap within the navy finances, regardless of Prime Minister Keir Starmer's pledges to spice up defence spending.

<img src="https://static.independent.co.uk/2026/02/27/16/27155147-0f55b087-7dca-4b30-9f47-c043e423060a.jpg" srcset="https://static.independent.co.uk/2026/02/27/16/27155147-0f55b087-7dca-4b30-9f47-c043e423060a.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/02/27/16/27155147-0f55b087-7dca-4b30-9f47-c043e423060a.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The Government appears set to sign off on a £1 billion contract with helicopter maker Leonardo" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The Authorities seems set to log off on a £1 billion contract with helicopter maker Leonardo (PA) The Yeovil facility dates again to 1915, when it was often called Westland and made planes utilized in World Battle One. It pivoted to helicopters within the Fifties and has not too long ago produced the Merlin and Apache helicopters.

In addition to the three,000 jobs on web site, an extra 9,000 jobs within the provide chain are supported by the manufacturing unit, with many workers working throughout the city, Somerset and neighbouring Dorset.