Blow to No 10’s investment summit as port giant pulls £1bn announcement over P&O row
The government’s Investment Summit has suffered a major blow after ports and logistics giant DP World pulled a scheduled announcement of a £1bn investment of its London Gateway container port, following criticism by a member of Sir Keir Starmer’s cabinet.
Sky News understands the Dubai-based company’s investment was due to be a centrepiece of Monday’s event, which is intended to showcase Britain’s appeal to investors and will be attended by the prime minister and Chancellor Rachel Reeves.
DP World’s investment in the port is now under review however, following criticism by Transport Secretary Louise Haigh and Deputy Prime Minister Angela Rayner of its subsidiary P&O Ferries.
In March 2022, P&O caused huge controversy by sacking 800 British seafarers and replacing them with cheaper, largely foreign workers, a move it said was required to prevent the company collapsing.
Announcing new legislation to protect seafarers on Wednesday, Ms Haigh described P&O as a “rogue operator” and said consumers should boycott the company.
In a press release issued with Ms Rayner, Ms Haigh said P&O’s actions were “a national scandal” and Ms Rayner described it as “an outrageous example of manipulation by an employer”.
While Ms Haigh has previously criticised P&O’s actions, the strength and timing of the ministers’ language undermined efforts by the Department for Business and Trade to make the Investment Summit a turning point for the government and the economy.
Transport Secretary Louise Haigh. Pic: PA
Hundreds of business leaders and investors, including representatives of US private capital and sovereign wealth funds, will attend the event in the City of London, as the government tries to drum up billions of pounds in foreign investment to fund its plans.
The event is seen by Downing Street as an attempt to reset Sir Keir’s premiership after a faltering first 100 days mired in rows about his advisers and acceptance of freebies.
As well as losing for now a £1bn investment in the UK’s key strategic infrastructure, the apparent lack of coordination between ministers will again focus attention on the competence of government operations.
Ms Haigh suggested consumers should boycott P&O Ferries. Pic: PA
It is understood the decision to pull the announcement and review an investment that has been in negotiations for months was made personally by DP World’s chairman Sultan Ahmed bin Sulayem.
He had been due to attend the Investment Summit on Monday, but will now not travel to London.
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Mr Sulayem has previously refused to apologise for P&O’s actions, saying the summary sackings were a decision made by local management and ultimately ensured the survival of the company and thousands of jobs that were retained.
The £1bn investment was intended to expand the London Gateway facility, adding two new berths to the four that already exist and a second rail terminal. The expansion would have seen it become the UK’s largest port by volume.
DP World generated global revenues of almost £14bn in 2023 and operates in more than 60 countries. It has already invested £2bn in London Gateway, and also owns and operates Southampton’s container port.
A DP World spokesman told Sky News: “The investment is under review.”
Downing Street and the Department for Business have been approached for comment.
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Politics
Trump campaign co-manager calls Lord Peter Mandelson an ‘absolute moron’ as peer is confirmed as Starmer’s new US ambassador
The co-manager for Donald Trump’s presidential election campaign has called Lord Mandelson an “absolute moron” – as the peer was officially announced as the next UK ambassador to the US.
The Labour grandee, who served in Sir Tony Blair and Gordon Brown’s cabinets, will become the UK’s top diplomat in Washington as president-elect Donald Trump returns to the White House in January.
In a post on X, Chris LaCivita linked to an article in The Daily Telegraph which reported on Lord Mandelson describing Mr Trump as “a danger to the world”.
The peer also described Mr Trump as “little short of a white nationalist and racist” during an interview with an Italian journalist in 2019, according to the newspaper.
In the post on X, Mr LaCivita said: “This UK govt is special replace a professional universally respected Ambo with an absolute moron – he should stay home! SAD!”
He added: “Mandelson described Trump as a danger to the world and ‘little short of a white nationalist’.”
It comes as Sir Keir Starmer confirmed the appointment of Lord Mandelson to the post.
The 71-year-old said: “We face challenges in Britain but also big opportunities and it will be a privilege to work with the government to land those opportunities, both for our economy and our nation’s security, and to advance our historic alliance with the United States.”
The prime minister said: “The United States is one of our most important allies and as we move into a new chapter in our friendship, Peter will bring unrivalled experience to the role and take our partnership from strength to strength.”
Analysis:
Lord Mandelson’s trade background key to pivotal role
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Chris LaCivita, co-manager of Donald Trump’s election campaign. Pic: Reuters
Sir Keir also thanked outgoing US ambassador Dame Karen Pierce, who will leave the post at the beginning of next year.
“I would also like to thank Dame Karen Pierce for her invaluable service for the last four years, and in particular the wisdom and steadfast support she has given me personally since July,” he said.
“She made history as the first woman to serve as UK ambassador to the US and she has been an outstanding representative of our country abroad. I wish her all the very best in future.”
Lord Mandelson was one of the key architects of New Labour and helped the party return to power in the 1990s.
He served as Sir Tony’s trade secretary and Northern Ireland secretary before standing down as an MP in 2004 to become a European Commissioner.
After Mr Brown awarded him a peerage in 2008 Lord Mandelson returned to government as business secretary.
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