The UK and Japan have announced a multi-billion-pound investment deal that Prime Minister Sir Keir Starmer said marks a “new era of co-operation” between the two nations. Downing Street said Japanese firms will spend more than £9bn on UK infrastructure and financial services and up to £9bn on UK offshore wind over the next five years, creating tens of thousands of jobs. The talks took place in London as Starmer met Japanese Prime Minister Sanae Takaichi, with both leaders stressing the importance of the partnership.
Starmer told reporters the discussions were very productive and that the two countries had reaffirmed their commitment to the Gcap fighter jet programme being developed alongside Italy. Separately, Rolls-Royce announced a collaboration with Japan’s Atomic Energy Agency to develop next‑generation nuclear technologies, and a technology agreement would link UK R&D and software expertise with Japanese manufacturing. Translating remarks from Tokyo, Japan’s prime minister called the UK “an extremely important partner.”
Downing Street highlighted that Mitsubishi Estate, Mitsui Fudosan and Nomura Real Estate were among the Japanese firms stating they would spend billions on infrastructure and real estate projects over the next five years. In Westminster, Conservative shadow business and trade secretary Andrew Griffith welcomed “any deal that brings investment” but warned Labour’s tax hikes and employer red tape could damage jobs and push more people onto welfare.
Analysts say the deal comes at a time when the UK economy is struggling to grow. While officials anticipate long‑term benefits in jobs and growth, experts caution near‑term headwinds. Earlier, data showed UK growth of 0.6% in the first quarter, with forecasts pointing to a slower path ahead. The IMF has warned that the US–Israel–Iran war could weigh on the UK more than other advanced economies, and the Bank of England has cautioned that inflation could rise, possibly reaching around 6% in a worst‑case scenario.
