UK Defence to retire outdated helicopters, drones in drive to save £500M

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The UK’s Ministry of Defence (MOD) is set to decommission and retire a number of British helicopters, drones, and vessels, as part of cost-saving measures. 

Defence Secretary John Healy made the announcement as part of the UK’s Defence Program Developments on November 20, 2024.

Healy, who has held the position of Defence Secretary for four months, said that his office had inherited financial problems in the department. 

“The inheritance was dire: the state of the finances and the forces was often hidden from Parliament, with billion-pound black holes in defense plans, taxpayers’ funds being wasted, and military morale down to record lows,” Healy said in his speech. “That is why we are taking swift action to inject investment, get a grip on Ministry of Defence budgets and kick-start much-needed reforms to start fixing the foundations for UK defense.”

Healy confirmed that six outdated military capabilities will be taken out of service. 

“These decisions are set to save the MOD £150 million ($190 million) over the next two years and up to £500 million ($631 million) over five years – savings that will be retained in full in defense,” he said. 

According to the MOD, a fleet of 46 British Army Watchkeeper Mark 1 drones will be phased out, as technology has outpaced the 14-year-old system. It also plans to decommission 14 Chinook heavy transport helicopters, some more than 35 years old, which will be accelerated out of service; and 17 Puma helicopters, some of which have been flying for more than 50 years.

In May 2022, the British Ministry of Defence initiated the New Medium Helicopter (NMH) tender to replace its Puma fleet. Although it anticipated participation from Airbus Helicopters and Lockheed Martin, it was revealed in September 2024 that only Leonardo Helicopters submitted a proposal, offering the AgustaWestland AW149. The contract is expected to be awarded in 2025.

Royal Navy vessels to be decommissioned include the HMS Northumberland frigate, and two Wave-class tankers, neither of which has been to sea for years

“We are driving far-reaching reform and fixing the foundations for our armed forces to make Britain better defended, strong at home and secure abroad,” Healy concluded.

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