Labour has been told that the frustrated defence sector ‘needs some decisions’ after an investment plan was delayed into next year.
Clive Higgins, UK boss of Italian group Leonardo, said arms makers had hoped the government’s spending strategy would be ‘a Christmas present rather than an Easter egg’.
Instead, delays mean that despite a promise to hike the defence Budget the companies that will produce new kit are yet to receive new orders making it hard to gear up for the increased demand.
Higgins told the BBC that the industry stands ready ‘to respond to those clear requirements the UK government has’ to prepare for growing threats.
But he added: ‘We’re coming to that point of needing a decision.
‘We were all hoping that the defence investment plan would be a Christmas present rather than an Easter egg so we do need some decisions.
Leonardo makes radar systems for Typhoon fighter jets
‘Government talks about working at pace – let’s get the right decisions made, let’s deliver all of that prosperity agenda that it’s talked about and critically those capabilities that our war fighters need.’
Leonardo employs more than 8,500 people in the UK with sites including Yeovil, Newcastle and Edinburgh, supporting a supply chain with 30,000 jobs. It makes helicopters as well as electronic warfare systems and radar technology used by Typhoon fighter jets.
Its Yeovil plant employs 3,000 people. The factory – formerly the site of Westland – is known as ‘the home of British helicopters’ and has been building the aircraft since the 1940s.
Over the weekend it emerged that Leonardo’s group boss Roberto Cingolani had written to defence secretary John Healey warning that its future In Yeovil and across the UK could be at risk because of delays to a new contract.
Leonardo is still waiting for a final decision from the Ministry of Defence on a £1bn ‘new medium helicopter’ contract to replace Britain’s ageing Puma fleet – even though it is the sole bidder after rivals pulled out in the summer of 2024.
Higgins said: ‘There’s been an element of frustration around the timing. This is a £1bn contract and we need the certainty.’
A spokesperson for industry body ADS said: ‘Neither industry or military planners can do their jobs appropriately without the certainty provided by the financial backing of the DIP.
‘Good intentions and good will to all are appreciated – but further delays in action are frustrating at best, disruptive to business at worst.’
The comments come after Sir Keir Starmer reportedly tore up spending wish lists drawn up by military chiefs – raising concerns about ‘affordability’.
Labour had previously pledged to release the crucial Defence Investment Plan (DIP) ‘this autumn’, but now it is not expected before January 2026 at the earliest.
The postponement came despite the head of MI6 warning that Britain must prepare for conflict with Russia. The DIP is also considered vital to boost the UK economy with tens of thousands of industrial jobs hanging in the balance.
Labour has pledged to increase defence spending to 2.6pc of gross domestic product by 2027 with an ambition for 3pc in the next Parliament.
A government spokeperson said: ‘We have signed over 1,000 major contracts since last July, boosted defence spending by £5bn this year and will invest a record £270bn in defence over this Parliament.
‘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.’