The UK and Ireland have strengthened their economic partnership as leaders gathered in Cork for the second UK-Ireland Summit, where Prime Minister Sir Keir Starmer announced £937 million in new Irish investment expected to create around 850 jobs across the United Kingdom.
The investment comes from 15 Irish companies operating in sectors ranging from artificial intelligence and renewable energy to telecommunications and corporate services. The projects will support economic growth in communities across the UK, including London, Doncaster, South Wales and Scotland, and form part of a broader push to deepen economic and strategic cooperation between the two countries.
Speaking ahead of the summit, Starmer said closer collaboration between the UK and Ireland was essential at a time of global economic uncertainty and rising cost-of-living pressures.
“As people on both sides of the Irish Sea feel the cost-of-living squeeze, we are investing in partnerships that make us better off and more secure,” he said. “The UK’s close friendship with Ireland is going from strength to strength, and this new investment is part of a much bigger picture of flourishing cultural, commercial and security ties.”
The Prime Minister added that strengthening relationships with key partners would help the UK navigate global challenges while supporting economic stability for families and businesses.
The new investment is also being framed by the government as a vote of confidence in the UK’s Modern Industrial Strategy, which aims to attract high-value international investment and drive productivity and sustainability across key industries.
Many of the investments have been supported by Enterprise Ireland, the Irish government’s trade and innovation agency, which recently published data showing that the UK remains Ireland’s most important export market. According to the agency, almost two-thirds of Irish companies already maintain a physical presence in the UK and the majority plan to increase their investment over the next 12 months.
A business roundtable held in Cork ahead of the summit brought together senior figures from UK and Irish companies across energy, infrastructure and technology sectors to discuss investment opportunities and economic collaboration.
Robert Adams, president of FOCUS Capital Partners, said London’s position as a global financial centre made it a natural base for international investment firms expanding into the UK.
“The UK is a highly attractive market for investment,” Adams said. “Expanding our presence in London allows us to work more closely with ambitious UK companies and support Irish and international investors seeking opportunities in the market.”
Irish engineering services firm Ayrton Group also confirmed plans to expand its UK operations, citing the size and diversity of the British market as key reasons for its investment strategy.
Managing director Kieran Linehan said the company had long viewed the UK as its most strategic expansion destination.
“The UK market has always been a natural fit for us,” he said. “Its scale, the strong cultural and business relationships between our countries and the shared language make it easier for Irish companies to grow here compared with many other international markets.”
Alongside economic investment, energy security has emerged as a key focus of the summit. Both governments welcomed progress toward the development of two major energy interconnectors linking the UK and Ireland.
One project will connect Wales and Ireland, delivering enough electricity to power around 570,000 homes and representing at least £740 million in private investment across both countries. A second interconnector between Northern Ireland and the Republic of Ireland is expected to help reduce electricity costs and strengthen energy resilience on both sides of the border.
Interconnectors allow countries to share electricity across national grids, helping balance supply and demand. They can enable the UK to export surplus renewable energy to European markets while importing lower-cost electricity when needed.
The projects are also part of broader efforts to strengthen energy cooperation across the Irish Sea as governments seek to accelerate the transition to cleaner power sources while maintaining stable energy supplies.
Beyond energy, the summit also addressed growing security concerns around critical infrastructure. The UK and Ireland agreed to enhance cooperation on protecting subsea fibre optic cables, which carry vast volumes of digital communications and underpin economic activity and national security for both nations.
Both countries will conduct joint exercises to test responses to potential incidents affecting these cables, reflecting concerns about the vulnerability of underwater infrastructure to sabotage or disruption.
In addition, the two governments have refreshed their defence memorandum of understanding to strengthen collaboration on maritime security, cyber threats and defence procurement.
The updated agreement includes measures to improve information-sharing and coordination in response to hostile activity in the Irish and Celtic Seas, including threats posed by Russian vessels and so-called “shadow fleet” shipping networks used to evade sanctions.
The investments announced at the summit span a wide range of sectors and regions across the UK. Irish technology firm Version 1 plans to create around 400 new roles in Northern Ireland in fields such as artificial intelligence, engineering and digital transformation. Aviation technology specialist Amach has announced a £45 million investment to create 150 high-skilled jobs across the UK over the next three years.
Telecommunications infrastructure company Step Telecoms will invest £25 million in a new 200-kilometre fibre optic cable linking the Welsh coast to major data centre hubs in Newport.
Meanwhile, Irish investment firm Elkstone has launched a €200 million venture capital fund, with around 20 per cent of the capital earmarked for startups and scale-ups in Northern Ireland.
Several companies are also expanding in the property and infrastructure sectors. The O’Flynn Group is continuing its investment in the UK’s student accommodation market, including a £35 million development in Manchester that will deliver 173 new student beds.
Other projects include Johnston Fitout Group’s new showroom and office expansion in Doncaster and a £170 million investment by Gas Networks Ireland to decarbonise compressor stations in Scotland.
Together, the projects reflect deepening economic ties between the UK and Ireland, with both governments seeking to strengthen collaboration across industries critical to long-term growth, energy security and digital infrastructure.
Starmer said the strengthening partnership between the two countries was delivering tangible benefits for workers and businesses on both sides of the Irish Sea.
“The action this government has taken to reset relationships and deepen partnerships with our closest allies is paying off,” he said. “It will help us withstand global challenges and protect money in the pockets of families up and down the country.”
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
