The government will on Monday welcome more than £50bn of investment in the British economy as Sir Keir Starmer tries to reset his administration after a first hundred days marked by scandal and infighting.
Sky News has learnt that the International Investment Summit in the City of London will comprise more than £50bn of deal announcements – or roughly twice the £28bn unveiled at the previous comparable gathering held under the former Conservative administration.
The total figure to be announced on Monday was still being finalised this weekend amid continuing negotiations with companies.
Sources said, however, that the final amount would “certainly” be in excess of £50bn.
The summit will be attended by executives from globally important companies such as Alphabet, BlackRock, Goldman Sachs and Deepmind.
In recent days, a row emerged involving DP World, which had been planning to announce a £1bn investment in the London Gateway port.
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The company threatened to cancel its attendance at the conference and review the investment in the wake of comments by the transport secretary, Louise Haigh, labelling its P&O Ferries subsidiary “a rogue operator”.
After Downing Street officials intervened, the dispute appeared to have been resolved this weekend, with the investment proceeding.
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Sky News can also reveal that the summit will include a behind-closed-doors session chaired by the business secretary, Jonathan Reynolds, and a number of chief executives.
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Image: Jonathan Reynolds is to meet with business leaders behind closed doors. File pic: Reuters
The group will, according to insiders, jointly scrutinise a green paper on industrial strategy that will also be published on Monday.
One invitee said they had been “asked to mark the government’s homework”.
A source close to Mr Reynolds said: “When the business secretary said this government would work in partnership with business, he meant it.
“We respect the expertise of business leaders and want their voice at the heart of policymaking.
“That’s why we’re getting them around the table before the strategy is published, so it works for the industries it’s designed to benefit.”
On Friday, Sky News revealed that Sir Keir would use his speech at the investment summit to say that his administration will scrutinise watchdogs across a range of industries to ensure that they are not acting as barriers to growth.
Sir Keir is said by officials to be determined to deliver the message that regulators such as Ofwat, Ofgem, the Prudential Regulation Authority and the Competition and Markets Authority should be focused on the competitiveness of the UK economy.
The event is being seen as a test of Labour’s economic agenda in the eyes of investors which wield influence over the destination of trillions of pounds of investment funding.
His speech will come, however, against the backdrop of a financial crisis at Thames Water, Britain’s biggest water utility, which is backed by sovereign wealth funds and pension funds from countries including Abu Dhabi, Canada and China.
Reports in recent weeks have suggested that global investors have become so alarmed by Ofwat’s approach to the Thames Water crisis that they are reluctant to commit further sums to British infrastructure projects.
On Thursday, the government appointed Poppy Gustafsson, the former boss of cybersecurity company Darktrace, as investment minister, ensuring that the government avoided the ignominy of staging Monday’s summit without a minister for investment being in place.
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The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.
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