The deals are projected to create 7,600 jobs and are part of a government strategy to strengthen economic ties with the United States.

The bulk of the investment, £90bn over the next decade, will come from private equity firm Blackstone. This is supplemented by significant pledges from tech giants, with Microsoft committing £22bn over four years and Google investing £5bn to expand its Hertfordshire data centre. Other significant investments include funds for life sciences, defence innovation, and advanced manufacturing from firms such as Prologis and Palantir.

Prime Minister Sir Keir Starmer hailed the news as “a testament to Britain’s economic strength”, a sentiment echoed by Business and Trade Secretary Peter Kyle, who said it reflected growing confidence in the UK’s industrial strategy.

However, the announcement comes amid a challenging economic backdrop and concerns from other sectors. Several major pharmaceutical firms, including AstraZeneca and Merck, have recently paused or reversed UK investment plans, citing an “increasingly challenging” business environment and switching investment to the US. The news also follows the shelving of a proposed deal to cut US steel tariffs.

This foreign investment arrives as domestic businesses appear to be slowing investment due to rising costs. According to the Office for National Statistics, the number of people on UK payrolls has fallen over the past year, and job vacancies are down significantly.

The announcement has also drawn criticism. Sir Nick Clegg, former Deputy Prime Minister, dismissed the investment as “crumbs from the Silicon Valley table”. He warned that the deals fail to address the UK’s “perennial Achilles’ heel” of its most promising start-ups moving to the US for investment. He urged the UK to “stand more on its own two feet” rather than “cling on to Uncle Sam’s coat tails”.