The Government is set to sign off on a £1 billion contract with helicopter maker Leonardo, after fears about the security of thousands of staff at its UK site in Somerset.
The Italian company’s plant in Yeovil had been left in limbo as it awaited the Government’s decision on whether to award the contract.
The Press Association understands the Treasury is preparing to approve a deal to purchase a new fleet of defence helicopters.
It is understood Chancellor Rachel Reeves and Sir Keir Starmer had chosen to intervene in response to the Ministry of Defence deprioritising the project as part of the Defence Investment Plan.
It follows reports that a planned visit by Defence Secretary John Healey to the Yeovil plant to award the contract was cancelled on Thursday.
Leonardo says it is the UK’s only end-to-end rotary wing manufacturer, with around 3,300 staff and working with almost 12,000 suppliers.
Chief executive Roberto Cingolani is reported to have previously said the UK firm’s future would be at risk if a deal was not approved.
As the only bidder for the Government contract, it has until the end of Sunday before the bid formally expires.
A Treasury source said: “Rachel cares about keeping the country safe and driving jobs in the UK because our security and economic growth are fundamentally connected.
“This project is key to those principles – she wasn’t going to let this deal collapse under her watch.”
Leonardo and the Ministry of Defence declined to comment.
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