US firms pledge £150bn investment in UK, as Starmer hosts Trump
The UK government claims to have received £150 billion in US investment, which it hopes will result in the creation of 7,600 jobs. The announcement, which falls during President Donald Trump's state visit, comes after a string of major tech companies, including Microsoft and Google, have pledged to invest billions of pounds in the United Kingdom. It is part of the UK's larger strategy to strengthen economic relations with the United States. However, certain industries, such as steel, have been dealt a blow in recent days, with a proposed agreement to lower tariffs scrapped. Several major pharmaceutical firms, including Covid-vaccine manufacturer Astrazenca, have suspended investment plans, saying that the UK is a increasingly difficult
country to do its business in.
Investors from the United Kingdom and the United States will consult with Sir Keir Starmer and Trump at the prime minister's country hoUSe Chequers on Thursday to discUSs economic matters. The overwhelming majority of the £150 billion investment - £90 billion - will come from Blackstone over the next decade, but how much money will be spent has yet to be determined. In June, the US private equity company revealed that it would invest £370 billion in Europe over ten years. Microsoft has promised to invest £22 billion in the UK over the next four years, while Google is set to invest £5 billion over the following two years to expand an existing data center in Hertfordshire. The investments, according to Starmer, were "a testament to Britain's economic growth and a clear indication that our country is open, aspirant, and eager to lead. Although it is hoped that the investments will result in thousands of jobs in the years ahead, it comes at a time when domestic companies appear to be decreasing investment due to rising running costs. According to the Office of National Statistics, 7,600 jobs will be created by the investment, but the number of people on UK payrolls has decreased by 17,000 in the year to August. In June to August 2025, unemployment fell by 119,000 (14%) from a year ago. Many companies have cited rising costs, such as the need to invest more in National Insurance and minimum wage, as reasons for slowing investment. Pharmaceutical firms have highlighted other challenges to investing in the UK in recent days. Merck, the US company, has canceled plans to invest £1 billion after being chastised by successive governments for undervaluing innovative drugs. Rather, it will shift research to the United States. AstraZeneca has delayed plans to invest £200 million at a Cambridge research site, a move that is projected to add 1,000 jobs. It has also moved investments to the United States. In the meantime, money from UK companies to the United States is also moving. The government referred to the drugs behemoth investing nearly £22 billion in R&D and manufacturing in the United States over a five-year period in the investment announcement.
Where is the UK investment going?
The planned investment, according to Business and Trade Secretary Peter Kyle, reflected increasing optimism in the UK's industrial strategy.
he said. However, former Deputy Prime Minister Sir Nick Clegg, who also served as Facebook's president of global affairs, told the BBC's Today programme that the investment wasThese record-breaking investments will result in the creation of thousands of high-quality jobs around the UK,
some perspectivecrumbs from the Silicon Valley table. He called for
to be included in thehype
and that the agreement did not resolve the UK'sperennial achilles heel,
Not only do we import all our electronics, but we export all our wonderful people and good ideas as well,which was that British start-ups tended to end up in the United States as they seek investment.
he said. Rather thancling on to Uncle Sam's coat tails,
he said the UK must learn tostand more on our own two feet.
