Amazon has unveiled plans to pour £40 billion into its UK operations from 2025 through 2027. The investment will fund new fulfilment centres, add 4,000 permanent jobs in Hull and Northampton, and upgrade existing sites in the East Midlands. The UK’s Labour government has welcomed the move as a sign of confidence in its economic policies, even as Amazon faces a formal investigation by Britain’s grocery regulator over supplier payment practices.
New Fulfilment Centres in the East Midlands
The East Midlands region already houses several Amazon warehouses, including sites in Derby, Sutton-in-Ashfield, and Nottingham. Under this plan, Amazon will expand those hubs and invest in advanced robotics and sorting technology to speed up deliveries and cut costs. The area is a key node in Amazon’s logistic network, processing millions of parcels every month for UK customers. Local councils say the upgrades will bring better road access and more training for machine operators and warehouse staff.
4,000 Permanent Jobs in Hull and Northampton
As part of the £40 billion pledge, Amazon will open a fulfilment centre in Hull in mid-2025 and another in Northampton in early 2026. Each site is set to create 2,000 full-time roles, ranging from pick-and-pack operatives to robotics technicians, safety officers, and mechatronic engineers. Starting pay will be at least £28,000 a year (£30,000 in London), along with benefits such as health plans and a pension. Prime Minister Sir Keir Starmer said the move “will give people new options to build careers, learn skills, and support their families.”
Probe by Grocery Regulator Over Supplier Payments
In June 2025, the Groceries Code Adjudicator (GCA) launched a formal probe into Amazon’s food arm, suspecting breaches of rules on prompt payment to suppliers. The GCA noted Amazon’s compliance score fell to 47%, last among the UK’s 14 largest grocery firms. If found guilty, Amazon could face fines up to 1% of its UK turnover—around £300 million. Amazon says it will fully cooperate and has already made “significant improvements” to its payment processes.
Personal Insight and Analysis
This £40 billion investment shows Amazon’s long-term view of the UK market. Building new sites and upgrading existing ones will help it handle growing online orders and speed up shipping. The 4,000 new jobs are welcome, but the grocery watchdog’s probe reminds us that rapid growth can strain supplier relations. In my view, Amazon must balance its expansion with fair treatment of smaller partners. If it does, this plan could cement its role as a major UK employer and logistics leader. If not, it risks fines and reputational damage that could cloud its long-term gains.
Sources: GOV.UK
