Starmer was forced to get involved after transport secretary Louise Haigh made controversial comments about P&O, resulting in them shelving their investment.
P&O was planning to announce a major new investment on Monday. (Image: Getty)
Sir Keir Starmer has been dealt another massive blow after cruise giant P&O pulled a £1bn investment – right before Labour‘s highly anticipated investment summit.
The company’s owners, Dubai-based DP World, decided to review their investment after Transport Secretary Louise Haigh called them a “rogue operator” after mass layoffs.
The money would’ve gone to its key London Gateway container port, expanding it to add two new ship berths and a second rail terminal, making it the UK’s largest port by volume.
Haigh told ITV: “I’ve been boycotting P&O Ferries for two and a half years and I’d encourage consumers to do the same.
“They’re a rogue operator. We’re cracking down on the way that they treated employees
Haigh’s comments lost Labour a £1bn investment from P&O. (Image: Getty)
“Make no mistake, this is good for workers and good for business. Cowboy operators like P&O Ferries will no longer be able to act with impunity, undercutting good employers in the process.”
Though the government was quick to distance itself from Haigh’s comments, a similar sentiment was evident in a press release from Deputy Prime Minister Angela Rayner issued the same day.
Sir Keir himself was forced to issue a response to Haigh’s comments and DP World’s shelved funding, telling Newscast: “I think we’ll resolve that”. He added that Haigh’s opinion on P&O is “not the view of the government”.
An insider source reiterated this, telling The Independent that Haigh’s remarks were “her own personal views and don’t represent the views of the government”.
However, in 2022, Rayner also criticised P&O. She hit out at their decision to fire 800 British workers and replace them with cheaper staff, mainly from overseas.
Labour’s growth strategy was already struggling to get off the ground, and the decision by DP World is the latest in a series of setbacks for Starmer’s plan from economic growth.
It comes less than 24 hours after chancellor Rachel Reeves was issued serious warnings over raising capital gains tax to 39 percent, which she is expected to do in her October 30 Budget to fill a £22billionn “black hole” in spending.
Labour’s investment summit is due to go ahead on Monday, but this withdrawl of crucial funding is a significant blow to Starmer’s economic plan.
