More than 3,000 local jobs have been secured after the Government announced a £1 billion contract with Yeovil-based helicopter firm Leonardo.
On Friday, it was revealed that Rachel Reeves was set to approve a £1 billion deal for a new fleet of defence helicopters after months of delays.
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The Italian company was the only bidder for the Government’s New Medium Helicopter (NMH) programme, with their bid expiring at the end of Sunday.
But the contract has been awarded to Leonardo, securing 3,300 British jobs.
As part of the deal, 23 new medium-lift helicopters will be provided by the company to the UK’s armed forces, the Ministry of Defence (MoD) said.
The contract also includes further investment in Proteus, the UK’s first autonomous uncrewed air system, which recently undertook its first flight and is made by Leonardo.
Announcing the deal, Defence Secretary John Healey said it was a “major vote of confidence in British industry”, while Chancellor Rachel Reeves described it as a “historic partnership”.
Mr Healey said: “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, British workers and British innovation.
“This Government’s broad deal makes Yeovil the proud home of Leonardo’s global military helicopter production, building world-class helicopters for our forces and allies around the world for many years to come.
“It backs British jobs and security today and makes the UK a pace-setter in uncrewed, technology and innovation for tomorrow.”
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.”
The new contract is great news for Yeovil, as it means that the company will stay at its Somerset base.
The announcement of the deal has been met with unanimous support.
Adam Dance, the MP for Yeovil, said on X that it is ‘outstanding news’ for the town, and that the deal represents a ‘strong vote of confidence’ in Yeovil’s future.
Chair of Yeovil Constituency Labour Party, Paul Sellers, said: “Awarding this key contract to Leonardo is a prudent decision that will also bring much-needed mega-investment to Yeovil.
“The decision to go with the Yeovil bid has been reached after a very rigorous defence procurement review.
“It took some time, but careful scrutiny was needed to make sure that our armed forces are properly equipped in a world where the nature of warfare is changing before our eyes.
“Leonardo won through because the Yeovil site has a proven record of producing helicopters to the highest possible standard. All credit must go to the skill and professionalism of those who work there.
“The helicopter factory is also the mainspring of our local economy. The local Labour Party has been lobbying the defence ministers to emphasise how vital this contract would be to our community, making sure that what was at stake was clearly understood.
“The new investment is expected to bring spill-over benefits to our local communities through the spending power of the 3,000-strong workforce, including some relief for local high street shops, which have been feeling the pinch.
“The decision to award the contract to Leonardo shows that this government prioritises the effective defence of our nation, takes care how it spends taxpayers’ money, values expertise and listens to local people. It also demonstrates confidence in the future of British helicopters in Yeovil.”
