Sir Keir Starmer is struggling to contain a Labour meltdown on the eve of his global business summit after he publicly rebuked Transport Secretary Louise Haigh for calling for a boycott of P&O Ferries. The row threatened a £1 billion investment from DP World, the Dubai-based parent company of P&O Ferries, which was intended to be a centrepiece of the summit.
Ms Haigh and Deputy Prime Minister Angela Rayner jointly issued a press release last week slamming P&O Ferries for sacking 800 staff in 2022. However, Sir Keir distanced himself from Ms Haigh's boycott call, saying it was 'not the view of the Government'. Officials spent hours 'hitting the phones' to repair relations with DP World, which later confirmed it would proceed with the investment after receiving 'the clarity we need'.
Insiders told the Observer that Ms Haigh and Ms Rayner were 'hopping mad' that No 10 had not protected them, amid claims they were unaware of the investment. A Labour MP told the Telegraph that Ms Haigh had been made a 'scapegoat', questioning why Ms Rayner had not been blamed. Some Labour MPs privately said Ms Haigh's position is 'untenable', though a No 10 source insisted Sir Keir 'retains confidence' in her.
Conservative critics seized on the row. Former business secretary Kemi Badenoch said: 'Labour's student politics was bad in Opposition. In Government it is costing us real money and real jobs.' Shadow Business Secretary Kevin Hollinrake argued Ms Haigh's comments 'speak to Labour's general attitude to the private sector'.
The summit, where ministers are launching a new industrial strategy, marks a frenzied start to the event. Labour MP Ian Byrne backed Ms Haigh, saying P&O Ferries is a 'rogue operator' that should 'never be forgotten or forgiven'.
