US firms pledge £150bn investment in UK, as Starmer hosts Trump

The UK government has announced that it has secured £150 billion in US investment, which it says will create around 7,600 jobs. The announcement coincides with President Donald Trump’s state visit and follows pledges from major technology companies, including Microsoft and Google, to invest billions of pounds in the UK. It forms part of a wider strategy to strengthen economic ties with the United States.

However, not all sectors are benefitting. The steel industry has suffered a setback after a proposed deal to cut tariffs was abandoned. Meanwhile, several major pharmaceutical companies – including Covid-19 vaccine manufacturer AstraZeneca – have suspended or scaled back investment, citing the UK as an increasingly challenging place to do business.

On Thursday, investors from both countries will meet Sir Keir Starmer and President Trump at the Prime Minister’s country residence, Chequers, to discuss economic matters. The bulk of the £150 billion package – around £90 billion – will come from US private equity giant Blackstone over the next decade, although the exact breakdown of spending has yet to be confirmed. In June, Blackstone announced plans to invest £370 billion in Europe over ten years.

Microsoft has committed £22 billion over four years, while Google is investing £5 billion to expand its data centre in Hertfordshire. Sir Keir Starmer described the commitments as “a testament to Britain’s economic growth and a clear indication that our country is open, ambitious, and ready to lead.”

Yet, the investment comes at a time when domestic companies are reducing spending due to rising costs. According to the Office for National Statistics, UK payroll numbers fell by 17,000 in the year to August, even though unemployment dropped by 119,000 (14%) year-on-year between June and August 2025. Businesses have pointed to higher National Insurance contributions and minimum wage costs as barriers to investment.

Pharmaceutical firms have also expressed frustration. Merck scrapped a planned £1 billion UK investment after clashing with successive governments over drug pricing, opting instead to expand research in the United States. AstraZeneca has postponed a £200 million expansion in Cambridge, which would have created 1,000 jobs, and has also shifted investment overseas. Meanwhile, British companies are increasingly investing in the US: the government’s own announcement highlighted nearly £22 billion in R&D and manufacturing investment there by a major pharmaceutical firm.

Where is the UK investment going?

Business and Trade Secretary Peter Kyle said the record-breaking US commitments reflected growing confidence in the UK’s industrial strategy.

“These investments will create thousands of high-quality jobs across the country,” he said.

But not everyone is convinced. Former Deputy Prime Minister Sir Nick Clegg, now Meta’s president of global affairs, told BBC Radio 4’s Today programme that the announcement represented “crumbs from the Silicon Valley table.” He warned that the deal did not solve the UK’s “perennial Achilles’ heel” – that promising British start-ups often end up relocating to the US in search of capital.

“Not only do we import all our electronics, but we export our talent and best ideas as well,” he said. “Rather than clinging to Uncle Sam’s coat-tails, the UK must learn to stand on its own two feet.”