UK and Japan set to agree investment deal worth £18bn

Keir Starmer says commercial and government agreements will create tens of thousands of jobs

The UK and Japan are set to agree £18bn worth of investment, creating tens of thousands of jobs.

Prime minister Keir Starmer will welcome his Japanese counterpart Sanae Takaichi to Downing Street on Sunday ahead of the G7 summit next week.

More than 10 commercial and government agreements are expected to be signed including a £9bn offshore wind deal.

It will also include Rolls-Royce deepening its collaboration with Japan’s Atomic Energy Agency, Downing Street said, signing a new agreement to develop next-generation technologies.

Japanese and British business leaders will join for a discussion on future opportunities for economic growth.

Starmer said: “These landmark agreements will bring multibillion-pound investment into the UK, creating tens of thousands of new jobs and driving new developments.

“As G7 economies and close security partners, we are working together with Japan on some of the most innovative technology in the world, harnessing the best of British and Japanese research and industry to deliver growth and security to every corner of the United Kingdom.”

Discussions will also include helping UK defence firms access Japanese investment, No 10 said.

It comes after Starmer’s leadership survival plans were rocked by the shock resignation of John Healey as defence secretary over a dispute about long-term funding for the military.

Healey was joined in his exit from government by armed forces minister Al Carns, as well as two parliamentary aides, heaping pressure on the prime minister, who is already facing the threat of a leadership challenge.