Stories

Fri, 27 Feb 2026

Fri, 27 Feb 2026 Government to give go-ahead for £1bn defence helicopter deal

The chancellor has stepped in to protect jobs at the helicopter manufacturer in Somerset, the BBC understands.
The UK government has confirmed a £1bn deal to purchase military helicopters from Leonardo's factory in Yeovil, Somerset. The decision comes after a planned contract award was cancelled at the last minute on Thursday. However, Treasury sources have revealed that the deal will be signed off on Friday. The Italian company's plant employs 3,000 workers and is Britain's only remaining specialist helicopter manufacturer. The government's intervention in the contract has been attributed to concerns over job protection and national security. Chancellor Rachel Reeves was said to be keen to see the project through to completion, citing a connection between security and economic growth. The deal will see 23 defence helicopters built at the Yeovil factory, which has a rich history dating back to World War One when it produced planes for the UK military.