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 in its London Gateway container port, following criticism by members 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 from 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.
Image: 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.
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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.
Image: 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.
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.”
Responding to Sky’s story, shadow science secretary Andrew Griffith said: “This is further evidence that Angela Rayner may have two jobs but she’s costing other people theirs.
“It is not surprising that when you take union laws back to the strike-hit 70s, that the UK becomes less investable. It’s not canapés at summits that sway investors, it’s having a sensible environment to do business.”
Prime Minister Sir Keir Starmerhailed next week’s summit when he was quizzed about Sky’s story on Friday.
When asked if his cabinet members had cost the country investment, he replied: “In the last I think four weeks we’ve had at least five or six huge investments in the UK, including £24bn today.
“We’ve got a massive investment budget, summit coming up on Monday where leading investors from across the globe are all coming, to the UK.
“This is very, very good for the country, very, very good for the future of jobs. It’s just the sort of change that we need to see.”
Steve Rotheram, the Labour mayor of the Liverpool City Region, defended the criticism of P&O, saying that while the UK needed as “much investment in this country as possible”, he had “very little sympathy with a company that sacks its workforce”.
“You can’t just fire and rehire,” he told Sky News. “You can’t just sack workers – there are protections in this country for everybody.”
A 76-year-old man has been arrested on suspicion of administering poison at a summer camp which led to eight children being taken to hospital, police said.
Police received reports of children feeling unwell at a summer camp in Canal Lane, Stathern, Leicestershire, on Monday.
Paramedics assessed eight children, who were taken to hospital as a precaution and have all now been discharged.
The suspect was arrested at the camp and remains in custody on suspicion of administering poison with intent to injure/aggrieve/annoy.
Detective Inspector Neil Holden said: “We understand the concern this incident will have caused to parents, guardians and the surrounding community.
“We are in contact with the parents and guardians of all children concerned.
“Please be reassured that we have several dedicated resources deployed and are working with partner agencies including children’s services to ensure full safeguarding is provided to the children involved.
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“We also remain at the scene to carry out enquiries into the circumstances of what has happened and to continue to provide advice and support in the area.
“This is a complex and sensitive investigation and we will continue to provide updates to both parents and guardians and the public as and when we can.”
The force said it has referred itself to the Independent Office for Police Conduct (IOPC) over what it said was the “circumstances of the initial police response”.
There is no evidence that malign activity was responsible for yesterday’s outage of air traffic control systems, the transport secretary has said.
Heidi Alexander said she has spoken with the chief executive of National Air Traffic Service (NATS), Martin Rolfe, and added that what happened was an isolated incident.
NATS has apologised for the IT problems after thousands of passengers suffered extensive travel disruption during one of the busiest times of the year.
The technical glitch led to more than 150 flight cancellations, leaving airlines reacting furiously.
Image: Transport Secretary Heidi Alexander
Ms Alexander wrote on X: “I have spoken with NATS CEO Martin Rolfe who provided further detail on yesterday’s technical fault.
“This was an isolated event and there is no evidence of malign activity.
“I know that any disruption is frustrating for passengers.
“Flights are now resumed and I am grateful to airlines who are working hard to get people to where they need to be.
“I will continue to receive regular updates. Passengers should check with airlines before travelling.”
Officials said a “radar-related issue” caused the air traffic control failure.
A spokesperson for NATS said: “This was a radar-related issue which was resolved by quickly switching to the back-up system during which time we reduced traffic to ensure safety.
“There is no evidence that this was cyber related.”
The problem occurred at NATS’ control centre in Swanwick, Hampshire, and affected the vast majority of England and Wales.
Aviation analytics company Cirium said 84 departures and 71 arrivals were cancelled to or from UK airports up to 10pm on Wednesday, with several flights diverted to other European airports.
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Travel expert Paul Charles: This is a major outage
There was limited disruption on Thursday, with a handful of British Airways flights cancelled because aircraft and crew were out of position.
Heathrow and Gatwick airports said they had resumed normal operations.
Affected passengers are unlikely to be entitled to compensation as the disruption was outside of airlines’ control, but they will be able to claim expenses for a reasonable amount of food and drink, a means to communicate and overnight accommodation if required.
Image: Martin Rolfe in 2023. Pic: PA
Ryanair has called on Mr Rolfe to resign, claiming “no lessons have been learnt” since a similar systems outage in August 2023.
The airline’s chief operating officer Neal McMahon said: “It is outrageous that passengers are once again being hit with delays and disruption due to Martin Rolfe’s continued mismanagement of Nats.”
Airlines have reacted furiously after a technical glitch in air traffic control systems led to more than 150 flight cancellations.
The National Air Traffic Service (NATS) has apologised for the IT problems – and said systems were back up and running 20 minutes after the “radar-related issue” was detected at 4.05pm.
But with thousands of passengers suffering extensive travel disruption, during one of the busiest times of the year, airline executives have warned this isn’t good enough.
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Departures resume after ATC problem
Ryanair’s chief operating officer Neal McMahon has called for NATS chief executive Martin Rolfe to resign – and claimed Wednesday’s incident was “utterly unacceptable”.
He said: “It is outrageous that passengers are once again being hit with delays and disruption due to Martin Rolfe’s continued mismanagement of NATS.
“It is clear that no lessons have been learnt since the August 2023 NATS system outage, and passengers continue to suffer as a result of Martin Rolfe’s incompetence.”
Mr McMahon was referring to a glitch that affected more than 700,000 passengers two years ago – and said that, if Mr Rolfe refuses to step down, the government should intervene.
“Heidi Alexander must act without delay to remove Martin Rolfe and deliver urgent reform of NATS’ shambolic ATC service, so that airlines and passengers are no longer forced to endure these preventable delays caused by persistent NATS failures,” he added.
The Department for Transport says Ms Alexander does not have any direct control over NATS – and no powers over staffing decisions at the service.
Image: Martin Rolfe in 2023. Pic: PA
EasyJet’s chief operating officer David Morgan added: “It’s extremely disappointing to see an ATC failure once again causing disruption to our customers at this busy and important time of year for travel.
“While our priority today is supporting our customers, we will want to understand from NATS what steps they are taking to ensure issues don’t continue.”
NATS is yet to comment on the calls for Mr Rolfe’s resignation – but has stressed that the glitch is not believed to be “cyber related”.
“This was a radar-related issue which was resolved by quickly switching to the back-up system during which time we reduced traffic to ensure safety,” a spokesperson had said.
Departures at airports across the country have now resumed – but passengers are being urged to check with their airline before heading to terminals.
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5:06
Travel expert: This is a major outage
John Carr, from Stourbridge, was on his way from Heathrow to Norway to help arrange his brother’s wedding when he discovered his flight was cancelled after checking in.
“I’m pretty gutted,” he said. “We’ve got loads of stuff in the suitcases to set up the venue, because we’re obviously flying to Norway. We’ve got the wedding rehearsal to do. It’s quite stressful.”
Liberal Democrat leader Sir Ed Davey called for an urgent investigation and also referred to the “utterly unacceptable” disruption two years earlier.
“With thousands of families preparing to go on a well-earned break, this just isn’t good enough. The public deserve to have full confidence in such a vital piece of national infrastructure.”
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Airlines may have to provide compensation, although there are exemptions for “extraordinary circumstances”, according to the UK’s Civil Aviation Authority.