The governments of the United Kingdom and Japan have reached an investment agreement worth over £18 billion, which will include investments in infrastructure and offshore wind energy.
Foreign news agencies reported that on Sunday, 14 Jun 2026 GMT+7, the UK and Japan finalized an investment deal exceeding £18 billion. UK Prime Minister Sir Keir Starmer described this as ushering in a "new era of cooperation" between the two countries.
The UK Prime Minister's Office (Downing Street) announced after a meeting between UK Prime Minister Sir Keir Starmer and Japan's female Prime Minister Sanae Takaichi in London that Japanese companies will invest more than £9 billion in the UK's infrastructure and financial services sectors.
Additionally, there will be investments of up to £9 billion in the UK's offshore wind energy projects, which are expected to create tens of thousands of jobs.
This agreement comes at a time when the UK economy is struggling to grow, with experts predicting that the war involving the US, Israel, and Iran will have a particularly severe impact on the UK.
However, it remains unclear how much of the investment amount cited by Downing Street represents new funds versus previously announced plans.
Sir Starmer and Ms. Takaichi also met with Japanese business leaders at the Prime Minister's Office on Sunday, with Starmer describing the discussions as "highly effective and very successful."
Furthermore, Sir Keir expressed that he was "very pleased" that both countries have reaffirmed their commitment to the development of a future fighter jet project, a joint effort with Italy.
At the same time, it was announced that Rolls-Royce will collaborate with Japan's Nuclear Energy Agency to develop next-generation nuclear technology, including technology agreements linking UK expertise in research, development, and software with Japan's manufacturing capabilities.
Nonetheless, despite Downing Street's statement that the deal will boost long-term employment and growth, experts predict the economy will face difficulties in the near term.
The UK economy grew by 0.6% in the first quarter of the year, but analysts expect growth to slow in the coming months.
Last month, the International Monetary Fund (IMF) stated that the war involving the US, Israel, and Iran will affect the UK more severely than other advanced economies worldwide.
Meanwhile, the Bank of England has warned that it expects UK inflation to rise as a result of this war, with worst-case scenarios projecting inflation could reach 6%.
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Source:bbc