Japanese businesses are committing to invest nearly £18bn in the UK, Rishi Sunak has announced as he meets the bosses of major firms in Tokyo.
The prime minister said the pledges are a “massive vote of confidence” in the British economy after he painted an optimistic outlook for the national finances.
It comes as Mr Sunak has ordered talks with the EU about automotive industry concerns following warnings of an “existential threat” posed by a looming Brexit trade deal deadline.
Mr Sunak set out the investments as he prepares to host a reception of business chiefs in the Japanese capital on Thursday, seeking to foster closer ties.
He expects to meet bosses of Nissan, Toshiba and Mitsubishi Estate, as well as representatives from UK firms Octopus Energy and Mott MacDonald.
Nissan has issued warnings about the costs of manufacturing electric cars at its Sunderland plant because of high energy costs and inflation.
Vauxhall’s parent company Stellantis said on Tuesday that it will be unable to keep a commitment to make electric vehicles in the UK without changes to the EU trade deal as a tariff deadline approaches.
Speaking to broadcasters on board the JS Izumo aircraft carrier in the Yokosuka naval base near Tokyo, the PM said: “It’s something that car manufacturers across Europe, not just in the UK, have raised as a concern.
“And as a result of that we are engaged in a dialogue with the EU about how we might address those concerns when it comes to auto manufacturing more generally.”
On concerns about UK battery making capacity, Mr Sunak said: “Nissan have invested a billion pounds in battery manufacturing capability in the North East. I’ll be talking to the Nissan CEO and other Japanese business leaders later about investment into the UK.”
Downing Street said the £17.7bn of new investments in businesses and projects in the UK will create high-skilled jobs and drive innovation.
The Marubeni trading house intends to sign plans envisioning spending around of £10bn in the UK to boost offshore wind and green projects in Wales and Scotland, No 10 said. A £4bn expansion of UK offshore wind projects off Suffolk and Norfolk by the Sumitomo Corporation was also billed.
“These new investments are a massive vote of confidence in the UK’s dynamic economy, from some of Japan’s top firms,” said Mr Sunak.
Mr Sunak has told Japanese business leaders at a reception in the Mori Art Museum in Tokyo that their commitment to invest in the UK is a “huge vote of confidence” in the economy.
He said they should invest in the UK because of its “strong, secure trading” and because it is, like Japan, an “island of innovation”.
Mr Sunak will unveil a new defence agreement with Japan amid growing concerns about the threat from China. The PM will commit to deploying a naval battle fleet in the Indo-Pacific in 2025 and to double UK troop numbers in upcoming joint exercises.
He will agree to launch a partnership on semiconductors in order to reduce the reliance on Beijing for the supply of the essential microchips.
Mr Sunak will share talks with world leaders including Joe Biden during the G7 summit. But he will not hold more personal bilateral talks with the US president – instead sitting down with France’s Emmanuel Macron and India’s Narendra Modi.
