Chinook Contract Update

Thursday 14th March 2024 Written Statements

[The Secretary of State for Defence (Grant Shapps)]

I am pleased to be able to inform the House that I have now personally written to US Defence Secretary Lloyd Austin informing him of my final decision to proceed with the first tranche of the Chinook capability sustainment programme. The programme will deliver a total of 14 extended range Chinook helicopters to the Department with delivery from 2027 and will enable us to cement our superiority in the skies and ability to respond at pace to situations across the globe. The UK is the only nation to be provided access to this class-leading heavy-lift helicopter capability outside of the US. The extended range variant of the latest Chinook model is specifically enhanced to conduct longer range special operations and contains more advanced technology than is needed on a standard Chinook.

I have carefully considered the case for investment, and detailed work has served to reassure me that the range of advanced capabilities offered by the programme are critical to remaining ahead of threats, such that we retain the ability to project force into the most dangerous of environments when called upon. The capabilities offered by H-47(ER) are unmatched and the programme offers real value for money in delivering national policy. I would like to express my sincere gratitude to my predecessor for presenting the opportunity to review the programme. Sterling work with our allies and partners in the United States has helped reduce the costs associated with the programme by over £300 million so far, and the programme is now affordable to the Department. These collaborative efforts pave the way for future foreign military sales with the United States.

Our extensive negotiations with the United States have helped cement reforms in US foreign military sales acquisition for the UK, which has now successfully passed into law. These laws will increase the speed and predictability of military procurement from the US going forward, and will strengthen shared partnerships like AUKUS.

As I stated in my recent address at Lancaster House, our adversaries are mobilising. The extended range Chinook is one of a raft of next generation capabilities that will ensure the United Kingdom is able to defend its interests in this more dangerous world. Interoperable with our strongest allies, we will together ensure the continued success of our winning alliances.

Proceeding with the programme will also deliver estimated UK prosperity benefits of an additional £151 million for the period up to 2031 over those that the current fleet would generate. With eight percent of H-47(ER) aircraft production and in-service support being provided by UK industry, it will further support key skills in areas such as avionics and electric power. Leonardo Electronics UK provides complex components for the defensive aids suite; BAES Rochester delivers a cutting-edge flight control system; and several other UK-based companies provide a range of components used in the production of the H-47(ER), with many more involved in the production of the global Chinook fleet.

I have also instructed my officials to conduct a review into the balance between our heavy and medium-lift helicopter fleets to ensure that our vertical lift capabilities are optimised to meet our standing requirements, while offering the best possible value for money for the Department and the taxpayer.

The Chinook extended range announcement adds to the list of concrete milestones achieved in this Government’s tenure and our uncompromising approach to ensuring the future security and prosperity of our great nation.

[HCWS344]