As Trump flies back to the USA, for the British Government, at a time when DFI into the UK has been falling (as per the graphic) they hope the investment into developing the special relationship is about to manifest and reverse the tide. Already the British had secured preferential trade terms over other countries and trade blocks, much to the chagrin of the EU. With this trip, the Americans have shown their intent, and the proposed investments now into the UK technology industry will be significant. So the headlines:

• The UK has secured over £150 billion of investment from US businesses
• Over £1.25 billion is to be into Financial Services
• AI infrastructure, data centres and R&D is also to be significant. Microsoft alone are to invest £22 billion
• There is to be increased co-operation on advanced modular reactors, where Rolls Royce will get a highly coveted license to operate in the USA.

For the job market, the news should be positive. Many of the investments are directly tied to new jobs: the financial services investments alone are expected to generate ~1,800 jobs; major technology and infrastructure projects will create thousands more. These are mostly high paid jobs as well.

Investment is spread across the UK, so not just London. Manchester, Edinburgh, the North East and the Midlands are explicitly mentioned. This helps with the levelling up agenda.

The modular nuclear reactor projects support clean energy goals, especially relevant given the drop off in power generation happening as Oil & Gas fields expire and current nuclear plants are decommissioned.

R&D, technology transfer, training of workers in advanced sectors will also enhance UK human capital. Startups and smaller firms may benefit from linkages to large U.S. firms.

The challenge will be marrying up the demand for expertise, with the supply, which is the tightrope the Labour Party have to walk, with Reform climbing the polls. Boris Johnson’s Government pursued a laissez faire approach towards work visa issuance, resulting in record immigration, equally for Labour, it is not clear that this option is available. What we expect to see as a result, is salaries to rise in key areas, as skill shortages heighten. Already in engineering the UK is facing a significant skill shortage.

Similarly, there is a danger of being overly reliant on foreign capital. Heavy dependence could make the UK vulnerable to external shocks or decisions made in U.S. boardrooms. If global conditions change, companies could scale back or pull out, leaving gaps in employment and tax revenues. For example, see how Ireland is now grappling with this issue, in light of American pressure.

Large foreign entrants may outcompete or buy out smaller UK firms, reducing local ownership and possibly weakening domestic supply chains or innovation ecosystems. Investments in AI infrastructure, data centres, and nuclear energy could give U.S. companies long-term control over parts of the UK’s critical infrastructure, potentially raising national security and sovereignty concerns. The world is polarizing, and it is not clear the UK should be economically so dependent on any one country.

That being the case though, overall, for the Government, the priority will be to accelerate this investment as fast as possible, so they have an economic record to defend come the next election. How quickly these announcements can convert into actual investments therefore will be critical.

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