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Government to give go-ahead for £1bn defence helicopter deal

The £1 billion contract will secure 3,000 jobs at Leonardo's Yeovil plant and support around 9,000 supply-chain roles, with government backing to protect defence manufacturing.

  • The UK Government is set to approve a £1 billion deal with Leonardo to build 23 defence helicopters, after delays.
  • Amid a reprioritisation in the Defence Investment Plan, ministers stepped in after the Ministry of Defence deprioritised the project, with Reeves and Starmer intervening to secure the deal.
  • The Yeovil factory employs 3,000 people and supports 9,000 supply-chain jobs, and Leonardo says it is the UK's only end-to-end rotary wing manufacturer.
  • Trade union Unite hailed the decision as a 'tremendous victory,' and a Treasury source said `she wasn’t going to let this deal collapse under her watch` because security and growth are 'fundamentally connected.'
  • Leonardo chief executive Roberto Cingolani had warned the firm's UK future was at risk without the contract, while the Yeovil factory, dating to 1915, produced Merlin and Apache helicopters, highlighting its defence role.
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GB News broke the news in London, United Kingdom on Friday, February 27, 2026.
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