Tech giant to create thousands of jobs in major UK expansion as Starmer pledges pro-growth reforms

Amazon has pledged to invest £40 billion in the United Kingdom over the next three years, marking one of the largest financial commitments from a global tech giant since Labour came to power. The move signals a major vote of confidence in Sir Keir Starmer’s government and its efforts to court big business.

The US retail and cloud computing behemoth will build four new delivery and fulfilment centres across the UK, including sites in Hull, Northampton, and the East Midlands. The expansion will create over 4,000 jobs and extend Amazon’s logistical reach across the country.

The investment also encompasses previously announced spending by Amazon Web Services (AWS), which will channel £8bn into cloud infrastructure. Amazon will also open two new corporate offices in East London and continue the redevelopment of Bray Film Studios in Berkshire, acquired by the company last year.

John Boumphrey, Amazon’s UK country manager, described the investment as “a bet on the UK”. He said the Labour government’s pro-business overtures had played “a big role” in shaping Amazon’s decision. “We like what we see,” he added, praising the new administration’s push for predictability and regulatory clarity.

Sir Keir Starmer welcomed the move, calling it “a massive vote of confidence in the UK”. The announcement comes just 24 hours after Downing Street published its long-awaited Industrial Strategy, which promises to slash red tape, overhaul planning systems, and direct regulators to focus on economic growth.

Chancellor Rachel Reeves hailed Amazon’s plans as an “endorsement of Britain’s economic strengths,” adding that Labour was “working hand-in-hand” with industry to position the UK as a global innovation hub. The strategy also includes a £2bn commitment to data centre infrastructure and hundreds of millions to support artificial intelligence adoption.

Andy Jassy, Amazon’s global chief executive, highlighted the company’s commitment to spreading growth across the country. “When Amazon invests, it’s not only in London and the South East—we’re bringing innovation and job creation to communities throughout England, Wales, Scotland and Northern Ireland,” he said.

The UK is Amazon’s third-largest market globally, behind only the US and Germany. The firm generated over £30 billion in sales in Britain last year, with growth of more than 12.5 per cent. It currently employs around 75,000 people across the UK.

Alongside infrastructure spending, Amazon will fund more than 1,000 new apprenticeships in 2025 and contribute to a government-backed initiative aimed at training 7.5 million British workers in AI skills by 2030.

However, the announcements come amid warnings that technological advances could lead to job cuts. In a memo last week, Mr Jassy suggested Amazon’s corporate workforce could shrink as the company leverages AI to drive efficiency. “In the next few years, we expect this will reduce our total corporate workforce,” he said.

Despite such challenges, Labour is framing Amazon’s commitment as evidence that Britain remains an attractive place to do business under its stewardship. The Prime Minister’s allies say it helps counter criticism from business leaders who have raised concerns over proposed increases to National Insurance for employers and incoming workplace reforms.

Labour’s high-profile courtship of global companies appears to be paying off—at least for now. The Amazon deal is not just a headline figure; it signals Labour’s intent to shape Britain’s economic future around technology, infrastructure, and international investment.