The UK government has announced more than £1.25bn in private US investment in the UK’s financial services sector ahead of US President Donald Trump’s second state visit.
The new US investments are expected to create 1,800 jobs and boost benefits for millions of customers across the country, the UK government said.
The deal secures £20bn in trade between the two nations – including an expected £7bn commitment from BlackRock, the world’s largest asset manager.
It is set to deliver more than £8bn in investment and capital commitments to the UK, with over £12bn flowing in the other direction – creating jobs and opportunities on both sides.
Other companies expected to invest include PayPal, Bank of America, Citigroup, and S&P Global.
Bank of America will create up to 1,000 new jobs in Belfast as part of its first-ever operation in Northern Ireland, the government said.
Citigroup plans to invest £1.1bn across its UK operations, while S&P Global will create 200 permanent jobs in Manchester through a £4m investment.
Firms cut jobs at fastest pace since 2021, Bank of England data shows
Cost of long term UK government borrowing hits fresh 27-year high
Bank shares take fright as budget tax hike is floated
“Strengthening ties with the US boosts our economy, creates jobs, and secures our role in global finance,” Business and Trade Secretary Peter Kyle said.
“These investments reflect the strength of our enduring ‘golden corridor’ with one of our closest trading partners, ahead of the US Presidential State Visit.”
Please use Chrome browser for a more accessible video player
Chancellor of the Exchequer Rachel Reeves said that the commitment from America’s leading financial institutions “demonstrates the immense potential of the UK economy”, as well as “our strong relationship with the US”.
The UK and US agreed a “landmark” economic deal in May, which secured major tariff reductions for key sectors and protected jobs in the automotive and aerospace sectors.
Discussions are ongoing with the US on a broader UK-US economic deal, aimed at increasing digital trade and strengthening supply chains.
MPs urge pressure on US over tariffs ahead of Trump visit
MPs have urged the government to apply maximum pressure on the US to obtain tariff relief ahead of Donald Trump’s state visit.
The Commons Business and Trade Committee described the upcoming visit as a crucial opportunity to push the US president to finalise the remaining terms of the economic prosperity deal.
While the UK and US reached a trade agreement in June that lowered tariffs on car and aerospace exports to the US, negotiations on British steel tariffs remain unresolved, keeping them at 25%.
Read more from Sky News:
BlackRock to invest £500m in UK data centres during Trump visit
Zero growth in July as economy ‘continued to slow’
Committee chairman Liam Byrne said the state visit is “no mere pageant”.
“We can’t escape the truth that Britain now trades with its biggest partner on terms that are worse than the past, the EU has in places secured a better edge, and key sectors of our economy still face the peril of new tariffs. That means jobs hang in the balance and investment waits on certainty.”
The committee also called on the government to finalise agreements on aluminium and pharmaceuticals, ensuring that the terms accurately reflect the UK’s supply chain dynamics and its shift toward low-carbon production.
Keep up with all the latest news from the UK and around the world by following Sky News
Be the first to get Breaking News
Install the Sky News app for free
It emphasised that the UK should also use its partnership with the US to strengthen its position against China in areas such as artificial intelligence and defence technology, while also securing more resilient supply chains and improved access to critical minerals.
A government spokesperson said the “special relationship” between the UK and the US “remains strong” and that “thanks to our trade deal, the UK is still the only country to have avoided 50% steel and aluminium tariffs”.
“We will work with the US to implement this landmark deal as soon as possible to give industry the security they need, protect vital jobs, and put more money in people’s pockets,” the government spokesperson said, adding, “as well as welcoming the president on this historic state visit.”
