Rachel Reeves' Bold Move: Securing Britain's Helicopter Future with Leonardo

British finance minister Rachel Reeves is expected to authorize a contract with Italian defense firm Leonardo for the construction of military helicopters, potentially securing thousands of jobs in Yeovil. The deal, valued at up to £1 billion, aims to protect UK defense spending by supporting domestic business and employment.

Britain's finance minister, Rachel Reeves, is poised to finalize an agreement with Italian defense company Leonardo to develop a new fleet of military helicopters, ensuring job security for the 3,000 workers in Yeovil, southwest England.

The deal, valued at up to £1 billion, was on the brink of falling through by the March 1 deadline. A Treasury insider reported that Reeves was determined to safeguard UK defense spending, as she believed it was crucial for protecting British business interests and employment.

Reeves is expected to approve the procurement of 23 medium-lift support helicopters. This is fewer than the 44 initially stated in a 2022 government notice. Leonardo's tender ends on March 1, and further discussions are anticipated as Prime Minister Keir Starmer's administration addresses a potential £28 billion shortfall in the defense budget.

(With inputs from agencies.)