By Stuart Kerr
Published: 30 June 2025, 09:54 BST
Updated: 30 June 2025, 09:54 BST
Amazon’s recent pledge to invest £40 billion in the UK over the next three years has been hailed as a major economic stimulus, promising job creation, technological advancement, and a £38 billion boost to GDP by 2027. The investment, confirmed in an official GOV.UK press release, spans logistics, cloud computing, and film production—sectors where Amazon already wields significant influence. Yet, beneath the optimistic headlines, concerns linger about automation-driven job cuts, labour conditions, and the role of public subsidies in facilitating corporate expansion.
The Three Pillars of Amazon’s Investment
1. Fulfilment Centres: Jobs vs. Automation
Amazon plans to open four new fulfilment centres in Hull, Northampton, and the East Midlands, creating 4,000 direct jobs. The facilities, equipped with advanced robotics, aim to enhance same-day delivery capabilities—a key competitive edge in e-commerce.
John Boumphrey, Amazon’s UK country manager, emphasised the broader economic impact, stating that the expansion will support small and medium-sized businesses reliant on Amazon’s marketplace. However, critics argue that automation could offset job gains. Dr. Carl Benedikt Frey of the Oxford Martin School warns that while new roles emerge, they often demand higher technical skills, leaving low-skilled workers vulnerable.
A 2025 report by the Institute for the Future of Work (IFOW) found that 30% of warehouse roles could be automated within five years, reinforcing concerns that Amazon’s job creation claims may not account for future workforce reductions.
2. AWS Data Centres: Fuelling the AI Boom
£8 billion of Amazon’s investment is allocated to expanding Amazon Web Services (AWS) data centres, reinforcing the UK’s position in cloud computing and AI. This follows a September 2024 commitment to bolster digital infrastructure, with projections suggesting the move will sustain 14,000 jobs annually in the tech supply chain.
Professor John Bryson, an enterprise expert at the University of Birmingham, sees this as a “game-changer” for regional economies, potentially attracting startups and fostering innovation outside London. However, AWS’s growth also raises energy consumption concerns. A National Grid report estimates that UK data centres could consume up to 6% of the nation’s electricity by 2030, intensifying debates over sustainability.
3. Film Production: A Creative Industry Boost
Amazon’s redevelopment of Bray Film Studios in Berkshire—home to productions like The Lord of the Rings: The Rings of Power—signals a major push into UK entertainment. Prime Minister Keir Starmer praised the move as a “vote of confidence” in Britain’s creative sector, aligning with the government’s Modern Industrial Strategy.
Yet, some industry analysts question whether Amazon’s dominance could squeeze independent studios. A 2024 British Film Institute (BFI) study found that streaming giants now fund over 40% of UK film and TV projects, raising concerns about market concentration.
The Dark Side of Expansion: Workforce Reductions and Labour Concerns
Despite Amazon’s job creation promises, CEO Andy Jassy has acknowledged plans to streamline corporate roles through AI-driven efficiencies. This aligns with broader trends—since ChatGPT’s 2022 debut, entry-level job vacancies in the UK have plummeted by 32%, according to Adzuna data.
Labour unions remain sceptical of Amazon’s working conditions. Mick Lynch of the RMT union argues that automation prioritises profit over worker welfare, while GMB Union disputes—reported by The Times—highlight allegations of gruelling fulfilment centre environments. Amazon denies these claims, citing a minimum wage of £28,000 and career development programmes.
A 2025 Groceries Code Adjudicator investigation into delayed supplier payments has further dented Amazon’s reputation, suggesting that its rapid expansion may come at a cost to smaller businesses.
Public Funding: A Hidden Subsidy?
While Amazon’s investment is privately funded, critics argue that tax incentives and infrastructure support—such as government-backed transport upgrades—amount to indirect subsidies. Dr. Kate Bell of the Trades Union Congress (TUC) contends that public resources should prioritise sectors with stronger labour protections.
“Investments must deliver quality jobs, not just quantity,” Bell told The Guardian, calling for stricter oversight. A 2024 Strand Partners report found that 60% of UK tech investments rely on some form of government facilitation, raising questions about corporate accountability.
Regional Growth vs. Local Concerns
The investment’s focus on areas outside London—including Hull and Northampton—aligns with the government’s “levelling-up” agenda. However, local communities fear unintended consequences. In Hull, residents worry about increased traffic and environmental strain, mirroring debates around Scotland’s Ravenscraig AI data centre, which faced backlash over energy usage.
Conclusion: A High-Stakes Gamble on the Future of Work
Amazon’s £40 billion bet on the UK underscores the nation’s growing reliance on tech-driven growth. While the economic benefits are undeniable, the long-term impact on workers remains uncertain. As AI reshapes industries, policymakers must ensure that corporate expansion doesn’t come at the expense of fair wages, job security, and sustainable development.
For now, the UK appears to be embracing Amazon’s vision—but whether workers will share in its rewards is still an open question.
Stuart Kerr is a technology journalist and founder of Live AI Wire. Follow him on X at @liveaiwire or contact him at liveaiwire@gmail.com.
