Britain and Japan plan £18 billion investment, tech partnership boost

Britain and Japan put more than £18 billion of investment and project finance on the table as Keir Starmer met Sanae Takaichi, with the biggest sums aimed at infrastructure, financial services and offshore wind. The package was designed to turn a diplomatic meeting into a jobs story, with the UK government saying it would support tens of thousands of jobs and strengthen the country’s growth strategy.

The clearest cash promise came from Japan, which was set to back more than £9 billion in UK infrastructure and financial services over five years. Another up to £9 billion was being lined up for offshore wind, a move the government said could unlock 5.9 gigawatts of floating projects and support developments in Scotland and the Celtic Sea. The named projects included Ossian, Green Volt and Erebus, tying the announcement to real energy assets rather than abstract pledges.

Beyond clean power, London and Tokyo were also preparing a technology partnership covering artificial intelligence, semiconductors and quantum computing. The government said the wider package would support British industries in technology, clean energy, infrastructure development and life sciences, three sectors at the centre of its Modern Industrial Strategy. More than ten commercial and government agreements were expected to be signed during the visit.

Corporate players were also being drawn into the deal. Hitachi Energy, Rolls-Royce and Eisai were among the companies expected to announce investments and collaborations spanning power-grid expansion, nuclear technology and life sciences. For Britain, that mix matters: the government has already chosen Rolls-Royce SMR as preferred bidder for the country’s first small modular reactors, while ministers have been trying to link energy security to industrial policy.

The timing added diplomatic weight. Takaichi’s visit came just before the June 15-17 G7 summit in France, and the meeting in London gave Starmer a chance to show momentum on trade, advanced technology and energy before leaders gathered in Évian-les-Bains. The broader relationship is already large, with the UK government saying it is worth £140 billion.

The trade figures show both the scale and the imbalance Britain wants to narrow. Total UK-Japan trade in goods and services reached £34.6 billion in the four quarters to the end of Q4 2025, making Japan the UK’s 14th-largest trading partner. Japanese inward direct investment stock in the UK stood at £102.0 billion at the end of 2024, while UK outward investment stock in Japan was £3.2 billion.

The two governments had already deepened ties earlier in 2026 with science and technology collaborations in life sciences, quantum and connectivity, including a £6 million research and innovation programme. They also signed a Memorandum of Cooperation in July 2025 to boost UK investment into Japan, building on the Hiroshima Accord and wider trade frameworks. Japan’s own offshore wind target, 10 gigawatts by 2030 and 30 to 45 gigawatts by 2040, gives the latest pact a clear strategic edge as both sides try to convert partnership language into capacity, supply chains and jobs.