Up to 3,000 skilled manufacturing jobs in the UK could be under threat unless the Ministry of Defence moves quickly to place a long-delayed helicopter order, industry sources have warned.
Workers at Leonardo Helicopters’ Yeovil facility in Somerset, Britain’s last remaining military helicopter factory, fear the site could close by the end of March if the government does not confirm a new contract soon.
Leonardo, the Italian-owned defence group that took over the former Westland Helicopters business, is the sole bidder for the £1 billion “new medium helicopter” programme, launched by the MoD in February 2024. However, prolonged delays in awarding the contract have cast doubt on the future of the factory.
Industry insiders said the bid’s “best and final offer” expires in March, with pricing reliant on complex global supply-chain commitments. One source said the company would have needed confirmation by January to meet production and delivery timelines. Delays beyond March risk forcing the entire procurement process to restart.
“It’s critical at the moment,” the source said. “If this slips past March, the price and the bid itself may no longer be valid.”
The situation has escalated in recent months. In November, Leonardo’s chief executive, Roberto Cingolani, told investors that discussions were ongoing with the UK government to strengthen collaboration. In December, he wrote directly to Defence Secretary John Healey, warning that delays could lead the company to scale back future investment in the UK, including in its electronics and cyber security operations.
Cingolani described the medium helicopter contract as a “cornerstone” of Leonardo’s UK strategy, adding that any further delay or cancellation would trigger a “reevaluation” of the company’s presence in Britain.
The standoff comes despite repeated ministerial promises to increase defence spending in response to heightened geopolitical risks, particularly Russia’s ongoing aggression in Ukraine. Defence suppliers have expressed frustration over the absence of a long-promised defence investment plan, which had been expected before Christmas.
Unite, the union representing workers at Yeovil, said uncertainty is eroding confidence among the workforce. General secretary Sharon Graham said employees were being left in limbo while the government delayed its decision.
“Leonardo workers are looking over their shoulders wondering where the next order will come from,” she said. “This uncertainty must end, and the government should confirm the medium-lift helicopter order now.”
A Ministry of Defence spokesperson said work on a new defence investment plan is underway and highlighted record levels of planned spending. The government intends to commit £270 billion to defence over the course of the current parliament, describing the inherited programme as “overcommitted and underfunded.”
For the Yeovil workforce, the timeline is far shorter. Industry figures warn that without swift action, Britain risks losing not just thousands of skilled jobs, but its last domestic capability to build military helicopters—a capability that would be difficult to restore.
