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

Britain and Japan are set to agree £18 billion worth of investment that will create tens of thousands of jobs.

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

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

Downing Street has signed a new agreement to develop next-generation technologies, saying it will also include Rolls-Royce deepening cooperation with the Japan Atomic Energy Agency.

Japanese and British business leaders will take part in a discussion on future opportunities for economic growth.

Starmer said: “These landmark deals will bring billions of pounds of investment to the UK, create tens of thousands of new jobs and drive new developments.

“As G7 economies and close security partners, we are working with Japan on some of the most innovative technologies in the world, drawing on the best research and industry from Britain and Japan to deliver growth and security to every corner of the UK.”

No 10 said the talks would also include helping British defense firms access Japanese investment.

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

Healey’s departure from the government was joined by armed forces minister Al Carns as well as two parliamentary deputies, piling pressure on the prime minister, who already faces the threat of a leadership challenge.