Billion-Pound Helicopter Deal Secures 3,300 UK Jobs

Landmark defence agreement strengthens battlefield capability, protects thousands of British roles and could unlock up to £15bn in export opportunities. The Government has awarded Leonardo UK a £1bncontract to deliver a new fleet of medium-lift helicopters for the Armed Forces, securing thousands of skilled jobs and positioning Britain as a global hub for military helicopter production and exports.

The deal will see 23 New Medium Helicopters (NMH) built in the UK, with the aircraft capable of operating alongside uncrewed systems to support defence operations around the globe. The agreement not only strengthens the UK’s battlefield capability but also establishes Yeovil, Somerset, as Leonardo’s global centre for military helicopter production and exports.

International demand could prove transformative. With around 20 countries seeking new medium-lift helicopters, overseas orders for aircraft built in Yeovil could generate more than £15 billion in exports over the next decade. The upgraded arrangement increases UK workshare on future orders to above 40%, paving the way for Britain to play a leading role in global helicopter manufacturing.

The agreement secures 3,300 jobs at Leonardo’s Yeovil facility, including 650 directly working on the NMH programme, alongside additional roles supporting autonomous systems development and the ongoing manufacture and maintenance of the Merlin and Wildcat fleets. The programme also supports nearly 70 companies across the UK supply chain, safeguarding sovereign defence skills and expertise for decades to come.

In addition to conventional helicopter production, the deal makes Yeovil a centre of excellence for military helicopter autonomy. The Ministry of Defence is continuing to invest in Proteus, the UK’s first autonomous uncrewed air system built by Leonardo, which recently undertook its first flight. Proteus has demonstrated its ability to carry out missions including anti-submarine warfare and represents a significant step forward in the development of optionally-crewed and fully autonomous rotary aircraft.

The development of uncrewed and autonomous systems sits at the heart of the Government’s Defence Industrial Strategy, aimed at strengthening Britain’s industrial base while ensuring cutting-edge capability for the Armed Forces.

Defence Secretary John 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.”

Chancellor Rachel Reeves added: “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 AW149 helicopter platform will underpin the NMH programme, delivering multiple rotary wing requirements using a single aircraft type. By consolidating roles previously undertaken by three separate aircraft types, the platform is designed to streamline operations, improve efficiency and enhance flexibility for future missions.

Nigel Colman, Managing Director of Helicopters UK at Leonardo, said: “We welcome the decision to award the New Medium Helicopter contract to supply medium lift helicopters to the Ministry of Defence, as well as the continued investment in Proteus – our autonomous rotary wing uncrewed air system in development with the Royal Navy.

Leonardo is committed to providing the UK Armed Forces with a world-class medium lift helicopter based on our leading AW149 platform that will serve our military personnel for many years to come. The Government’s procurement of the AW149, as well as the continued investment in autonomy, will support more than 3,300 jobs in Yeovil, the Home of British Helicopters, as well as 12,000 across the UK supply chain.” The agreement significantly expands the UK’s share of production on future export variants of the AW149, with the potential to sustain up to 3,900 jobs in the South West — a 20% increase on current employment levels at the site.

As the war in Ukraine has underlined, helicopters remain a critical component of modern warfare, transporting troops, equipment and capabilities across complex and contested environments. The NMH will be capable of operating in all conditions, supporting missions ranging from frontline combat to humanitarian assistance and disaster relief. The Ministry of Defence already spends nearly £7bn annually with the defence industry in the South West, supporting more than 37,000 jobs. The NMH contract forms part of the Government’s broader commitment to increase defence spending to 2.6% of GDP from 2027, representing the largest sustained rise since the end of the Cold War and totalling £270bn over this Parliament. By combining sovereign manufacturing, export ambition and frontier autonomy technology, the Leonardo deal marks a significant step in aligning defence capability with industrial growth. For Yeovil – long known as the home of British helicopters – it cements a future at the forefront of global military aviation.