Opened the debate
Will the Minister confirm the Adoption Fund will continue to support adoption placements for children throughout 2024-25 and provide details on future funding allocations beyond that point?
House of Commons · Urgent Question
New Medium Helicopter Contract 2026-01-12
12 January 2026 · 23 other contributors
Opened by Adam Dance LD Yeovil
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Adam Dance raised concerns about new medium helicopter contract 2026-01-12 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
- Concerns raised about the continuation of the Adoption Fund for 2024-25 and future funding allocations were noted.
- The Minister of Defence provided an update on the Ministry of Defence's new medium helicopter procurement.
- The Minister confirmed ongoing discussions with Leonardo UK regarding NMH exports and autonomous helicopters.
How the debate unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Other contributors (23)
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Question
Leonardo in Yeovil has been the only bidder for the UK’s £1 billion new medium helicopter contract for over a year. If this contract is not awarded by March, we will lose 3,000 manufacturing jobs and support for over 12,000 regional supply chain jobs. Will the Minister commit to protecting the future of the site in Yeovil and state that the NMH programme is vital to our national defence?
Minister reply
I thank the hon. Member for his questions. The NMH decision will be made as part of the defence investment plan, which will be announced shortly. I continue those conversations with Leonardo and understand the importance of Yeovil not only to his constituency but to our wider defence ecosystem.
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Question
The NMH programme existed in the previous Government’s unfunded £29 billion equipment plan. Their failure to prioritise the programme means we need the defence investment plan to secure our country's security. Can the Minister confirm if there is still a military requirement for NMH?
Minister reply
My hon. Friend is right about two things: first, defence is an engine for growth; secondly, the Conservatives left huge swathes of their equipment programme unfunded—a problem we are sorting out because of the mess that the previous government left.
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Question
Can the Minister confirm whether there is still a military requirement for NMH? If so, is he still committed to procuring NMH? Given that the DIP was promised in 2025 but now it's 2026 and that promise has been broken, can the Minister tell us when the DIP will be published?
Minister reply
Deary me. It is this Labour Government who are increasing defence spending to the highest level since the end of the cold war. The Conservatives cut defence spending significantly during their tenure.
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Question
I support calls by my union, Unite, for a speedy decision on crewed helicopters. Might the Minister have any news on the manufacture of autonomous helicopters here in the UK?
Minister reply
As a fellow Unite member, I recognise the importance of good, well-paid, unionised jobs in our defence industry. The opportunities in autonomy were set out clearly in the strategic defence review.
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Question
Does the Minister recognise that if Yeovil is not sustained, we will lose those skills for a generation? Given that Leonardo is the only remaining bidder, will the Government stop dithering and get on with it now?
Minister reply
I thank the hon. Gentleman for his questions. All decisions on the new medium helicopter contract will be made as part of the defence investment plan. We continue those conversations with Leonardo.
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Question
Leonardo is an important company for Somerset, Dorset and the wider south-west. Will the Minister give a specific date for the publication of the defence investment plan?
Minister reply
The hon. Gentleman is right to say that corporate decisions about where investment goes are important. The Department continues dialogue with Leonardo. I am afraid I will not be able to give a date for the DIP but it will be published shortly when ready.
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Question
What more will that investment do to support neighbouring areas such as Burton and Uttoxeter?
Minister reply
The defence industrial strategy is a key piece of the puzzle in building up our new armed forces. My hon. Friend’s question about Rolls-Royce is important. We have given Rolls-Royce a £9 billion contract for new nuclear reactors to support the SSN-AUKUS work.
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Question
How does the Minister see how delay in decision making is not only holding back our world-class industry, but delivering uncertainty to key companies across the country and all the people they employ?
Minister reply
The hon. Lady is absolutely right to say that there are important defence companies in her constituency and across the country. We continue to place contracts with the defence industry, with more than 1,000 placed since the general election, and over 80% of those with UK firms.
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Question
How does the Minister recognise the impact of his Department’s delay in compromising not just regional development but national protection?
Minister reply
I met the chief executive of Yeovil College briefly at the Great South West conference last year, and I understand its involvement and partnership with the private sector. Industry must have full certainty that when something is in the programme, it will be funded.
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Question
Does the Government accept what has been estimated by Adam Dance regarding the contract not being concluded successfully before March?
Minister reply
I thank the right hon. Gentleman for his question and the tone in which he asked it. In fact, I think that “Shifting the goalposts?” is one of the very best Defence Committee reports and it was issued when he was Chair of that Committee. The contract included a period where prices were guaranteed; we are keeping that in mind.
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Question
How much confidence can British industry have that the Government are listening to the need for speeding up defence procurement decisions?
Minister reply
I thank the hon. Gentleman for his advocacy for his constituents who work at Leonardo. We are already taking steps to reform defence procurement to speed up decisions but a big decision about the future of the NMH and the funding for it needs to be taken as part of the whole programme.
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Question
Will the Minister do everything in his power to get a move on, confirm or refute the rumour about descoping the number of AW149 airframes under this contract?
Minister reply
As the right hon. Gentleman was a Defence Minister in the last Government, he will understand the challenge of having an unfunded equipment programme that we are seeking to address in the defence investment plan. This procurement was bounded by the process and we will make a decision.
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Question
How much have the repeated delays cost the taxpayer through failure demand and has any assessment been made of future failure demand costs?
Minister reply
Focusing on the military impact, how much have the repeated delays cost the taxpayer through failure demand—through the extended use of existing helicopters, long past their sell-by date, with ever-increasing maintenance costs—and has any assessment been made of future failure demand costs?
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Question
The Minister welcomed questions from MPs but did not answer whether the defence investment plan will be published this financial year. He also did not speak to the critical nature of a decision before going into the next financial year, missing multiple deadlines and refusing to give further ones.
Minister reply
The right hon. Gentleman knows that we have found additional funding for defence; there is £5 billion extra in our defence budget this year. The NMH decision will be made as part of the defence investment plan, which will be published shortly.
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Question
The Minister seems unable to confirm that this matter will be decided before the next financial year. Does he recognise that they are putting into doubt not just the NMH, but the ability to produce uncrewed helicopters in the future?
Minister reply
The hon. Gentleman is certainly right that it is really important to have an industrial base that can build autonomous helicopters and autonomous lift. The decision will be made as part of the defence investment plan.
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Question
Rotary assets are vital for military logistics, especially given the retirement of Puma. Can the Minister outline the rotary requirements for the armed forces and confirm whether the new medium helicopter is still a requirement?
Minister reply
The hon. Gentleman comes from a background of knowledge in this respect. The decision on the NMH will be made as part of the defence investment plan.
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Question
Is it true that one reason for the delay in the medium-lift helicopter is a rearguard action to buy US Black Hawks instead? Will he confirm that the defence investment plan will include a medium-lift helicopter?
Minister reply
We have been clear that we want more of a rising defence budget to go to British companies. I am afraid that I will not be able to give the hon. Gentleman the full details, because they will be set out in the defence investment plan.
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Question
Most people know that delays are due to Treasury restrictions. Will he emphasise to the Treasury that having supply chains within UK borders is a key strategic defence requirement?
Minister reply
The right hon. Gentleman is absolutely right to talk about small businesses and the wider supply chain. We want to see our suppliers in the UK expand and sell to the UK military more easily.
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Question
Is the lack of a decision on the new medium helicopter completely divorced from access to SAFE, which Leonardo supported for UK participation?
Minister reply
Yes, we were very clear that we wanted to explore options for UK participating in SAFE but could not match value for the UK taxpayer and industry. We continue to co-operate closely with European allies.
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Question
The efficiency of defence procurement must be a priority at this time, given threats from Russia. Can the Secretary of State provide UK business with confidence that the defence investment plan will be announced this year?
Minister reply
Since the general election, we have signed over 1,000 defence contracts, more than 80% to UK companies. We will continue to use increasing defence spending with UK firms.
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Question
What urgency is there to fill the capacity gap of medium-lift helicopters and secure full utilisation of what used to be Joint Helicopter Command Aldergrove?
Minister reply
It is important that, as part of the defence investment plan, we continue to maintain lift capabilities across our armed forces. That will include a mix of crewed and uncrewed systems.
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Question
Delays in UK Ministry of Defence contracts create cash flow challenges for SMEs, especially those dependent on defence contracts. Will the Minister agree to an overhaul of the contractual system?
Minister reply
I thank the hon. Gentleman for his advocacy for defence industries in Northern Ireland. We placed a £1.6 billion order for new missiles from Northern Ireland and look forward to developing the defence growth deal for Northern Ireland.
Government Response
I thank the hon. Member for Yeovil (Adam Dance) for this urgent question and thank you, Mr Speaker, for allowing me to provide an update on the current status of the Ministry of Defence’s new medium helicopter procurement. Earlier this afternoon, I spoke with the CEO of Leonardo UK and the managing director of Leonardo Helicopters to continue our conversations around NMH exports and autonomous helicopters, stressing that Leonardo remains an important strategic partner for the MOD. The NMH programme was first announced in March 2021 by the previous Government, with competition opening nearly three years later in February 2024. The Government will make a final decision on the award of the NMH contract through the wider defence investment plan, which is backed by the largest sustained increase in defence investment since the end of the cold war, spending £270 billion on defence in this Parliament alone.
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