UK and Japan reach £18bn investment deal on infrastructure and energy

Japanese firms will spend more than £9 billion on UK infrastructure and financial services and up to £9 billion on offshore wind, Downing Street said. The commitments are projected to create tens of thousands of jobs over the next five years.

Deal terms and signings More than 10 commercial and government agreements are expected to be signed during the visit. Mitsubishi Estate, Mitsui Fudosan, and Nomura Real Estate are among the Japanese companies listed for real-estate and infrastructure spending.

Rolls-Royce will work with Japan’s Atomic Energy Agency on next-generation nuclear technologies. A separate technology agreement will link UK research and development with Japanese manufacturing.

Political and economic backdrop The UK economy grew 0.6 percent in the first three months of the year. Analysts expect growth to remain sluggish in coming months, and the Bank of England has warned that inflation could reach 6 percent in a worst-case scenario tied to external conflict.

The Conservative shadow business and trade secretary said his party welcomed any deal bringing investment but criticized tax hikes and employer rules for harming employment.

“The UK is an extremely important partner.”

Discussions also covered ways for UK defence firms to access Japanese investment. The agreements come ahead of the G7 summit next week.