Boost for the UK as Japanese companies agree to boost investment by £18billion

Japanese firms yesterday agreed to boost investment in the UK by £18billion, in a move hailed by Rishi Sunak as a ‘massive vote of confidence’ in Britain’s post-Brexit economy.

A string of major corporations announced deals to coincide with the signing of an economic and security pact between Britain and Japan.

The move will see huge investments across the country, including in offshore wind farms, affordable housing and science projects.

Mr Sunak thanked Japan for helping smooth the UK’s application to join an Asia-Pacific trade bloc known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. He said yesterday’s deals were testament to the strengthening relationship between the two nations.

‘These new investments are a massive vote of confidence in the UK’s dynamic economy, from some of Japan’s top firms,’ he added.

‘Working with the Government and British industry they will create the kind of high-quality, reliable jobs and transformative local investment we are delivering around the country.’

Masumi Kakinoki, chief executive of Marubeni Corporation, which has agreed to invest £10billion in green energy projects in Britain, said: ‘We eagerly anticipate collaborating with the UK Government to unleash a surge of investment into the nation’s clean energy transition. We are on the brink of an energy revolution and it is partnerships like these that will help ensure our shared success.’

The Prime Minister spent much of yesterday in Tokyo meeting business leaders in a push to further strengthen trade ties.

Japan is already the fifth biggest investor in Britain and annual trade between the two countries is approaching £30billion

Pictured: Mr Sunak shows off his socks to Japanese Prime Minister Fumio Kishida, which have the name of Kishida’s favorite baseball team on them, during their bilateral meeting in Hiroshima ahead of the G7 Summit in Japan on May 18, 2023

Mr Sunak made a point of charming his host, Japan’s premier Fumio Kishida, by wearing the socks of his baseball team, the Hiroshima Toyo Carp. Having complied with Japanese etiquette by removing his shoes, Southampton-supporting Mr Sunak gestured downwards and said: ‘I hope your baseball team has had a better season than my football team, who have had a very bad season.’ Southampton were relegated.

The Prime Minister also unveiled new sanctions on Russia’s diamond trade, as Western leaders prepared to step up support for Ukraine. Russia’s £3billion-a-year diamonds trade will be at the centre of the crackdown, with the PM imposing a total ban.

Leaders of the G7 summit will gather in Hiroshima today for a three-day summit focused on boosting the economy and addressing the challenge posed by dictatorships such as China and Russia.

A government source said the Prime Minister would use the summit to ‘warn against complacency in defending our values and standing up to autocratic regimes’.