In brief
UK and Japanese leaders have sealed a huge £18bn investment deal that will see Japanese firms spend more than £9bn on UK infrastructure and finance and another £9bn on offshore wind. The move is described as a ‘new era of cooperation’ and is expected to create tens of thousands of jobs. At the same time, analysts warn that the UK economy could feel a slowdown, as the US‑Israel‑Iran war threatens to increase inflation to as high as 6%. Related deals include the GCap fighter jet program and a nuclear technology partnership with Rolls‑Royce. These forums underline a drive for stronger trade ties amid global uncertainty.
UK PM Sir Keir Starmer and Japan PM Sanae Takaichi signed a pact that will see Japanese firms pour £18bn into the UK. Half of it—over £9bn—will fund infrastructure and finance, while the other half will push offshore wind projects, sparking tens of thousands of jobs.
Starmer said the agreement marks “a new era of co‑operation.” In a side room, the partners also confirmed ties to the GCap fighter‑jet programme and a nuclear‑tech partnership with UK’s Rolls‑Royce.
But experts warn the UK economy’s growth is softening; the IMF flags the US‑Israel‑Iran war as a likely blow to UK growth, and inflation could hit 6% in the worst case.
Japanese companies like Mitsubishi Estate, Mitsui Fudosan and Nomura Real Estate set to invest billions on projects over the next five years.
Read more: GCap fighter‑jet programme | IMF on Middle East war impact
