The UK government has announced it has secured £150bn of US investment, a package it says could generate 7,600 jobs.The announcement coincided with the signing of the “Tech Prosperity Deal” between US President Donald Trump and Prime Minister Sir Keir Starmer, under which companies including Microsoft and Google will commit billions to projects in Britain.
The agreement forms part of the UK’s wider strategy to strengthen economic ties with the US. However, the move comes alongside setbacks in other areas, with talks on a potential steel tariff reduction being shelved and several major pharmaceutical companies halting planned investment.
A significant share of the pledged investment—£90bn—will come from US private equity group Blackstone over the next decade, though details on how the money will be allocated remain unclear. Blackstone previously announced plans to invest £370bn across Europe during the same period.
Under the tech deal, the UK and US will collaborate in fields such as artificial intelligence (AI), quantum computing and nuclear energy. Microsoft has committed £22bn in the UK over four years, while Google is investing £5bn to expand a data centre in Hertfordshire.
Starmer described the commitments as “a testament to Britain’s economic strength and a bold signal that our country is open, ambitious, and ready to lead.” He has sought to make the UK a key destination for US capital in an effort to stimulate growth.
While the government expects the new investments to create thousands of jobs, the broader picture shows challenges in the domestic economy. Payroll data from the Office for National Statistics indicates a fall of 127,000 workers in the year to August, while vacancies dropped by 119,000 (14%) compared with a year earlier.
Businesses have pointed to rising operating costs—including higher National Insurance contributions and minimum wage increases—as reasons for scaling back spending.
The pharmaceutical sector has been among the most vocal. US firm Merck abandoned a planned £1bn investment, citing government policies that undervalued new medicines, and shifted research activity to the US. AstraZeneca also paused a £200m project in Cambridge that had been expected to create 1,000 jobs, opting instead to redirect funds across the Atlantic.
