Three thousand jobs hang in the balance at the UK's only remaining helicopter manufacturer after delays awarding a vital £1 billion defence contract.
3,000 jobs at risk at Yeovil plant (Image: Getty)
Local businesses in the West Country are warning they face ruin with 3,000 jobs at the UK's only remaining helicopter manufacturer hanging in the balance.
Italian aerospace and defence company, Leonardo, could be forced to wind down its operations at its historic Somerset plant, after delays in the awarding of a vital £1billion contract.
Shaun Whitehouse, owner of Lanes Hotel in West Coker, which employs more than 35 people, said: "To be brutally honest with you, I could not see a future without Leonardo. We are so reliant on them, as are many other businesses. If they go, we go."
His warning reflects the scale of the manufacturer's presence in the area, with the company employing more than 3,000 people locally and supporting a further 9,000 jobs across its wider supply chain.
Adam Dance, the Liberal Democrat MP for Yeovil, said that failure to award the contract would put the town's heritage at risk.
"If they pull out of the UK altogether, that's a huge amount of jobs. The Government needs to wake up," he said. "This is our heritage, it is what Yeovil is known for. Everyone you speak to here, knows someone who worked there."
Leonardo provides significant investment locally, with the company and its wider supply chain representing around £1.2million in income to Yeovil College each year through an engineering apprenticeship scheme.
Hundreds of young people train as engineers thanks to Leonardo's presence in the town.
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But earlier this week, Leonardo's chief executive Roberto Cingolani wrote to the Defence Secretary warning that any delay to the New Medium Helicopter (NMH) Programme contract would force the company to reevaluate its entire UK presence.
In his letter, reported by The Telegraph on December 21, Mr Cingolani described the helicopter contract as "a cornerstone" of his company's UK strategy.
He warned: "Any delay or cancellation in the programme award would force a reevaluation of Leonardo's UK presence, including investment in electronics and cyber security divisions."
Mr Cingolani said that if the contract could not be secured and work therefore not guaranteed at the Yeovil site, then the location would be "at risk"as would the firm's development of drones there.
He suggested that such a failure would trigger a wider review of the firm's investment in other operations, such as cybersecurity, across the country.
Councillor Mike Rigby, Somerset Council's Lead Member for Economic Development, Planning and Assets, said: "It's very disappointing that the Government has delayed announcing its Defence Spending Plan and the award of what would be a vital contract for the Leonardo operation in Yeovil until the spring."
However, the Ministry of Defence has not confirmed a spring timeline for the announcements.
Mr Rigby added that they had "expected an announcement before Christmas" and said the delay "unhelpfully fuels uncertainty and a great deal of concern around the future of what is the UK's only remaining helicopter manufacturer".
The Government announced in July that the Defence Investment Plan would be presented "before the end of the year" as part of the 2025 Strategic Defence Review.
Mr Dance has been pushing the Government for a decision since July. In November, he challenged the Prime Minister in the Commons over the "long overdue contract".
The MP told Sir Keir Starmer that Leonardo's future, thousands of jobs and the £320million the company contributes to local GDP were all dependent on the New Medium Helicopter Programme contract.
The Prime Minister responded: "I pay tribute to those in Somerset and the hon. Gentleman's constituency in the defence sector, which is hugely important to our country and our security. I can confirm that we are continuing with the established procurement process for the new medium helicopter programme to deliver modern equipment for our armed forces."
At the Liaison Committee last Monday, the Prime Minister said: "We're working hard on the Defence Investment Plan and we will publish it as soon as it's ready, but you will appreciate that involves very significant and important decisions that we need to make sure we get absolutely right."
A Ministry of Defence spokesperson said: "We are working flat out to finalise the Defence Investment Plan, which will deliver the best kit and technology into the hands of our frontline forces at speed and, importantly, invest in and grow the UK economy.
"The UK's New Medium Helicopter programme is ongoing and no final procurement decisions have yet been made. That outcome will be confirmed in due course."
