Dubai-based company DP World, which owns P&O Ferries, has put a reported £1bn investment in the UK on hold following backlash from government ministers. The planned expansion of the London Gateway port was supposed to be announced at a Labour government investment summit, but DP World’s chair and CEO will now not attend after criticism from Deputy Prime Minister Angela Rayner and Transport Secretary Louise Haigh. P&O Ferries, a subsidiary of DP World, faced backlash in 2022 for firing 800 workers without warning and replacing them with lower-paid agency staff. The government has announced new worker protections to prevent such practices in the future.
The government has vowed not to engage with P&O Ferries or DP World unless on safety grounds, with Haigh calling them “rogue operators.” Despite the criticism, DP World has committed to complying with new legislation and continuing to work with the UK government. However, DP World’s planned investment in expanding the London Gateway port is now under review.
The situation has highlighted tensions between the government and business, with Labour’s employment and tax policies raising concerns among global firms considering attending the upcoming investment summit in the UK. Critics have noted that the timing of the summit, just before the budget announcement, may lead to uncertainty for major companies looking for clarity on tax and spending policies. Despite these challenges, the event, sponsored by major banks and attended by top CEOs, is expected to go ahead, with Labour’s Rachel Reeves delivering the keynote speech.
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