UK, Japan plan £18bn investment package

The UK and Japan are preparing to agree an £18 billion investment package that spans energy, technology and defence-related cooperation. More than 10 commercial and government agreements are expected to be signed during upcoming high-level meetings in London. The planned accords are framed as a coordinated effort to channel new capital into the UK economy and deepen bilateral economic ties.

Prime Minister Keir Starmer will welcome Japanese counterpart Sanae Takaichi to Downing Street on Sunday ahead of the G7 summit next week. Business leaders from both countries are due to join discussions on future opportunities for economic growth as part of the visit. The engagement is positioned around securing long-term investment commitments rather than isolated project funding.

A £9 billion offshore wind deal is a central element of the prospective package. This agreement is expected to direct substantial Japanese investment into UK offshore wind projects. The focus on offshore wind underlines the role of clean energy infrastructure within the broader economic relationship between the two countries.

By prioritising large-scale offshore wind investment, the two governments are aligning the package with capital-intensive projects that can absorb significant funding. The scale of the planned offshore wind commitment highlights both countries’ interest in expanding low-carbon energy capacity alongside industrial and financial cooperation.

The investment framework also includes a new agreement for Rolls‑Royce (RR.L) to deepen collaboration with Japan’s Atomic Energy Agency. This accord will focus on developing next‑generation technologies, further extending existing ties in advanced engineering and energy-related research. The collaboration signals a commitment to joint work in high-technology sectors rather than only traditional infrastructure.

The Rolls‑Royce (RR.L) arrangement forms part of the multi-sector structure of the package, which combines energy generation, cutting-edge technology and industrial partnerships. By embedding next‑generation technology development within the investment plans, the two countries are associating capital flows with innovation-focused projects.

Discussions around the £18 billion package will include measures to help UK defence firms access Japanese investment. This element adds a security-industrial dimension to the economic agenda, broadening the scope beyond civilian infrastructure and technology. It reflects interest in fostering cross-border capital flows into the UK defence sector under agreed frameworks.

Starmer has described the set of agreements as "landmark" and said they will bring multibillion‑pound investment into the UK, create tens of thousands of new jobs and drive new developments. The combination of offshore wind, advanced technology collaboration and potential defence-sector investment is designed to underpin long-term industrial activity. The full suite of more than 10 agreements is expected to be concluded around the leaders’ meeting ahead of the G7 summit.