Unite speaks up about delays in awarding Leonardo contract

Almost a year ago, the UK government announced it would be spending more money on defence, with the Prime Minister promising that “we will translate defence spending into British growth, British jobs, British skills, British innovation.”

Leonardo has been the sole bidder for more than a year for a £1bn contract to deliver the Ministry of Defence (MoD)’s new medium helicopter programme, but no decision on the contract has been made.

Unite, which represents thousands of workers in defence, have been in “numerous conversations with the government over many months, producing high-level reports, outlining the need to put those words into action. For jobs and national security.”

The Union has written to the Government to urge an end to the delays.

Adam Dance, the liberal democrat MP for Yeovil, raised an urgent question on the matter in the House of Commons on January 12, urging the government to award the contract as soon as possible to protect more than 3,300 jobs in his constituency.

The government said it valued Leonardo as a defence partner but that no announcement about the contract would be made until the defence investment plan (DIP) had been published. The plan has reportedly been delayed.

The Defence Investment Plan (DIP) was supposed to be published last summer alongside the Strategic Defence Review. Last autumn, this was pushed back to “before the end of 2025”, and now it seems the prime minister may further postpone it until March or even later.

According to The Times, Leonardo had given the government an ultimatum: award the contract by March, or it would close down its Yeovil site for good.

Mr Dance asked the government to address delays to the awarding of the medium helicopter contract and the potential closure of the Leonardo helicopter site in Yeovil.

“The government will make a final decision on the award of the contract through the wider defence investment plan (DIP).”

In response to the delays, a spokesperson for Unite said: “This is starting to feel like Alice Through the Looking Glass, where it is always jam tomorrow.

"Allowing speculation about the government buying US-made defence equipment instead of high-quality British kit is fuelling uncertainty. This is about jobs, of course, but it is also a matter of national security. The latest set of threats from President Trump makes buying British and investing in British defence even more imperative."

They added: "We need these investments in British manufacturing now. The UK currently has the lowest investment rates in the G7. The government’s constant dithering is not only putting thousands of jobs at risk but also endangering the specialist skills that the UK needs to make fighter jets, military helicopters, drones and satellites in the future."

Unite is calling on the Government to stop these "acts of self-harm" and to urgently publish the DIP.

Unite have also requested that the government ensure the DIP includes the awarding of the new medium lift helicopter contract to Leonardo, to be manufactured at their plant in Yeovil, Somerset.

Senior Unite defence representatives at Leonardo and other key defence sites have written directly to Prime Minister Kier Starmer, calling for him to act swiftly and decisively in order to ensure the jobs and skills are not lost.

The letter. (Image: Unite)

Sharon Graham, Unite general secretary, said: “The government's inertia on this issue is an act of self-harm. With employers planning in the dark and threatening job losses as a result, the government needs to stop the dithering and delaying.

 “Failing to back British defence manufacturing would be a devastating own goal, destroying jobs and skills.

“When the announcement was made for higher defence spending, it came with guarantees around jobs, skills and innovation. We now need to move beyond the warm words and deliver."

Leonardo has refused to provide a comment at this time.