UK and Japan Sign £18 Billion Investment Deal

Prime Minister Keir Starmer and Japanese Prime Minister Sanae Takaichi signed a series of investment and technology agreements totaling more than £18 billion during a meeting at Downing Street on Sunday. The package includes a five-year Japanese investment pipeline of over £9 billion for infrastructure and financial services, and up to £9 billion for floating offshore wind projects in Scotland and the Celtic Sea, targeting 5.9 gigawatts of capacity to power approximately 8 million homes.

The two leaders established the UK-Japan Frontier Tech Partnership to accelerate cooperation in semiconductors, AI, and quantum computing, which includes a production agreement between the British Semiconductor Centre and the Japanese chipmaker Rapidus. In defense, they created a Defence Capability and Industrial Council and reaffirmed their commitment to the Global Combat Air Programme to develop a next-generation fighter jet with Italy.

Specific corporate commitments include a collaboration between Rolls-Royce and the Japan Atomic Energy Agency on next-generation nuclear technologies, a £48 million investment by Eisai for a dementia treatment facility in Hatfield, and the creation of 500 jobs by Hitachi Energy UK. The summit occurred ahead of the G7 meeting in Évian-les-Bains, France. The agreements come as Starmer faces internal leadership challenges following the resignations of John Healey and Al Carns, and amid IMF warnings regarding the economic impact of the US-Israel war with Iran.