UK Deliberates $1.35 Billion Helicopter Contract Amid Uncertain Defence Spending

The UK has yet to finalize a £1 billion contract with Italian firm Leonardo to build new military helicopters. Delayed by financial planning, the decision impacts 3,000 jobs at Britain's last military helicopter site in Yeovil and 9,000 additional roles in its supply chain.

In a developing story, the United Kingdom remains undecided on granting a £1 billion contract to the Italian company Leonardo for the construction of military helicopters. With less than two days to the deadline, this delay has left the future uncertain for Leonardo's factory in Yeovil, which employs 3,000 workers and supports 9,000 jobs in its supply chain.

Leonardo, known for operating Britain's last military helicopter manufacturing site, may face closure if the contract falls through. The tender offer is set to expire on March 1, according to sources close to the matter. Discussions between the company and the UK government are reportedly ongoing, though official comments from Leonardo remain absent.

The Ministry of Defence has confirmed that the New Medium Helicopter programme is still under evaluation, with no solid decisions made. The delay is partly attributed to financial constraints in finalizing the nation's defence investment plan, which is delayed amidst budget concerns. Meanwhile, Prime Minister Keir Starmer's promises to enhance defence expenditures face renewed scrutiny.

(With inputs from agencies.)