As a resident of this once great country, I am astounded at the rhetoric that our government produces. The Prime Minister promises on the one hand and delivers nothing on the other. There doesn’t appear any will to defend the UK. If there was, AW149 would be ordered by now, both safeguarding the British factory and with it jobs and our defence.
Everyday, we hear of the threat to the UK from our adversaries and yet Labour does not deliver.
Why the UK Hasn’t Ordered the Leonardo AW149 Yet? Link to Leonardo.
Despite Leonardo being the sole remaining bidder, the UK government has repeatedly delayed the New Medium Helicopter (NMH) decision. The reasons fall into four main categories.
1. The Government Hasn’t Finished the Approval Process. Why?
Multiple official statements say the NMH programme is still stuck in the business‑case evaluation and approval stage.
- Ministers say the bid is still “under active evaluation” and the process is “commercially sensitive”.
- The MoD says a final procurement decision will be made “in due course”.
- The programme is awaiting sign‑off as part of the Defence Investment Plan, which has itself been delayed.
In short: the paperwork isn’t done, and the Treasury hasn’t released the money. Why?
2. Budget Pressure & Treasury Pushback
The Defence Investment Plan has been repeatedly delayed, partly due to Treasury resistance to spending and the fallout from other procurement failures (e.g., Ajax).
This means:
- No major new contracts are being signed until the DIP is published.
- Even though Leonardo is the only bidder, the MoD cannot commit funds without Treasury approval.
3. The Competition Collapsed — Creating Political Risk
Originally, NMH was a three‑way competition (Airbus H175M, Sikorsky S‑70M, Leonardo AW149).
But by 2024, Airbus and Sikorsky withdrew, leaving Leonardo as the only bidder.
This created a dilemma:
- Awarding a £1bn contract without competition is politically sensitive.
- Ministers fear accusations of a “single‑source sweetheart deal”.
- Some officials have floated reframing or relaunching the requirement instead of awarding it directly.
So the government is hesitating because the competition effectively collapsed.
4. Industrial Strategy vs. Defence Needs
Leonardo has warned that without the NMH contract, its Yeovil factory — the UK’s last full‑spectrum helicopter plant — may close.
- Leonardo says it “cannot subsidise Yeovil forever” after 14 years without a major UK helicopter order.
- The CEO warned that delays could force Leonardo to scrap all UK investment and reconsider its entire British footprint.
- MPs warn that thousands of jobs are at risk if the contract is not awarded soon.
This puts political pressure on the government — but also raises the stakes of making the “wrong” decision.
5. The Government Keeps Delaying the Defence Investment Plan
The Strategic Defence Review (SDR) was published in 2025, but ministers told industry to wait for the Defence Investment Plan, which has slipped into 2026.
Until the DIP is published:
- No major procurement decisions are being finalised.
- NMH remains in limbo.
Bottom Line
The government hasn’t ordered the AW149 because:
They don’t have final Treasury approval, the competition collapsed, the Defence Investment Plan is delayed, and ministers are nervous about awarding a £1bn single‑source contract without political cover.
Leonardo’s increasingly sharp warnings show the pressure is rising — but until the DIP is published, the MoD is effectively frozen.