DP World Halts £1 Billion UK Investment Amid P&O Ferries Controversy

DP World suspended a planned £1 billion investment in the UK after government criticism of its subsidiary, P&O Ferries, for its previous mass redundancies. This setback occurs just before Prime Minister Keir Starmer's investment summit, meant to promote growth and stability. The situation underscores tensions between Labour ministers and business entities.

Port and logistics giant DP World has temporarily halted its £1 billion investment in the UK following government criticism of P&O Ferries, a key subsidiary, reported Sky News on Friday. This development delivers a significant blow to the UK government ahead of an upcoming investment summit.

Prime Minister Keir Starmer, seeking to use Monday's international investment summit to promote growth and stability, faces challenges due to criticism from key ministers toward P&O Ferries. DP World, a Dubai-based company, is re-evaluating the major investment previously earmarked for announcement at the summit.

Amid government criticisms, especially over P&O Ferries' past mass redundancies, Deputy Prime Minister Angela Rayner and transport minister Louise Haigh have introduced new seafarers' protections. The opposition Conservative Party argues this dispute highlights a lack of business understanding among Labour ministers.

(With inputs from agencies.)