Government to give go-ahead for £1bn defence helicopter deal

The UK's only specialist helicopter manufacturer has been left in limbo after a planned visit by the defence secretary to award a £1bn contract was cancelled.

John Healey was due to visit Leonardo Helicopters in Somerset on 26 February to announce the Italian firm would be awarded a contract to build the New Medium Helicopter for the Ministry of Defence (MoD), BBC News understands.

The MoD must make a decision by Sunday but said "no final procurement decisions have yet been made". Leonardo's CEO Roberto Cingolani previously said the firm's future would be at risk if the bid was not approved.

The government has repeatedly pushed back making a decision on the contract.

Adam Wardrope, Leonardo's vice president of market development, previously suggested the company was feeling hopeful after its latest talks with the MoD.

An MoD spokesperson said the outcome of the contract decision would be confirmed "in due course".