UK and Japan Seal £18 bn Investment Pact, Boosting Infrastructure and Jobs

Mon Jun 15 2026 06:22:29 GMT+0000 (Coordinated Universal Time)

UK and Japan sign a £18bn investment agreement, with Japanese firms committing up to £9bn to UK infrastructure, offshore wind and finance, sparking hopes of a new economic partnership amid looming global tensions.

Prime Minister Sir Keir Starmer and Japanese Prime Minister Sanae Takaichi settled a landmark £18 bn deal that sees Japanese firms pledge £9 bn each to UK infrastructure, financial services and offshore wind projects, creating thousands of jobs. The agreement also confirms joint work on defence and nuclear technology through UK‑Japan partnerships. While offering a future boost to growth, experts warn the UK may face short‑term pressure, citing geopolitical risks such as the US‑Israel‑Iran conflict. Mixed political views highlight optimism about investment alongside concerns over tax and regulatory impacts on the workforce.

UK and Japan announce £18 bn investment deal

Prime Minister Sir Keir Starmer and Japanese Prime Minister Sanae Takaichi today locked in a deal that could bring more than £18 bn of capital into the UK. The agreement, made in London, is framed as a new era of cooperation between the two countries.

Japanese firms are set to invest 9 bn pounds in UK infrastructure and financial services and a further 9 bn pounds in offshore wind projects. The plan is projected to generate tens of thousands of jobs across sectors that are at the heart of the UK’s post‑pandemic recovery.

Downing Street said the investment will also support a number of real‑estate and manufacturing projects, citing companies such as Mitsubishi Estate, Mitsui Fudosan and Nomura Real Estate. These firms will spend over 9 bn pounds on infrastructure and real‑estate projects over the next five years.

While the deal is seen as a boost to long‑term growth, experts warn that the UK economy could feel pressure in the short run. The IMF has flagged the US‑Israel‑Iran conflict as a risk that could hit the UK hardest among major economies.

Prime Minister Starmer also reaffirmed partnership on the Gcap fighter‑jet programme, alongside Italy. Separately, Rolls‑Royce will work with Japan’s Atomic Energy Agency to advance nuclear technology and technology exchange agreements that combine UK research with Japanese manufacturing.

Political voices reflected a mix of optimism and caution. Shadow trade secretary Andrew Griffith welcomed the investment as a welcome stimulus for UK firms but argued that tax hikes and regulatory burdens continue to erode jobs and push more people onto welfare.