Japan and the UK agreed a multi-billion pound investment deal on Sunday, with Prime Minister Sir Keir Starmer meeting his Japanese counterpart Sanae Takaichi in London. Downing Street said the agreement, valued at up to £18bn, will create tens of thousands of jobs. Japanese firms, including Mitsubishi Estate, Mitsui Fudosan, and Nomura Real Estate, plan to spend more than £9bn on UK infrastructure and financial services and up to £9bn on UK offshore wind projects over the next five years. It is not clear how much of the listed investment represents new money versus previously announced plans.
Starmer said the talks with Takaichi and Japanese business leaders at Downing Street on Sunday were “very productive.” Speaking through a translator, Takaichi described the UK as “an extremely important partner.” Starmer also said he was “really pleased” the two countries had reaffirmed their commitment to the Global Combat Air Programme (GCAP) fighter jet project, which also involves Italy.
Separately, Rolls-Royce announced it will work with Japan’s Atomic Energy Agency to develop next-generation nuclear technologies, and a technology agreement will link UK research and development and software expertise with Japanese manufacturing.
The deal comes as the UK economy struggles to grow. The economy grew 0.6% in the first quarter of 2026, but analysts anticipate sluggish growth in the months ahead. The International Monetary Fund said last month that the ongoing US-Israel conflict with Iran will hit the UK hardest among advanced economies. Separately, the Bank of England has warned it expects UK inflation to increase as a result of the war, possibly reaching 6% in a worst-case scenario.
Conservative shadow business and trade secretary Andrew Griffith said his party welcomed “any deal that brings investment” to the UK. He added that Labour’s “tax hikes and employer red tape are doing huge damage, destroying jobs and putting more and more people onto welfare.”
Related coverage: MSI reported last week that the UK faced a widening defence spending row, as two ministers resigned over a military funding dispute.