UK set to approve Leonardo helicopter contract worth up to £1bnContract award and UK defence investment contextReeves set to intervene to secure helicopter manufacturingLONDON/ROME, Feb 27 (Reuters) - Britain's finance minister Rachel Reeves is set to award a contract to Italian defence company Leonardo to build a new fleet of military helicopters, a Treasury source said on Friday. Without a new contract, Leonardo had said it could shut Britain's last military helicopter manufacturing site, in Yeovil, southwest England, threatening the jobs of the 3,000 people who work there. Defence investment plan delays and budget pressureThe government has previously said it needed to finalise its defence investment plan before it could award the helicopter contract. As well as the 3,000 jobs on site, a further 9,000 jobs in the supply chain are supported by the factory. Currency conversion and credits($1 = 0.7422 pounds)(Reporting by Sarah Young and Sam Tabahriti in London and Giulia Segreti in Rome; Editing by Kevin Liffey)

Source: The Guardian February 27, 2026 15:48 UTC