Last-minute Change of Course: British Prime Minister Eases Tensions with DP World

A looming conflict between the British government and Dubai-based port operator DP World, which threatened to endanger the investors' conference organized by Sir Keir Starmer, has been averted following the Prime Minister's intervention. DP World had previously threatened to put a planned £1 billion investment in the London Gateway port on hold or at least delay its announcement. This was due to earlier criticism from a cabinet minister about the labor practices of its subsidiary P&O. There were also reports that some company executives were questioning their attendance at the summit scheduled for Monday in London. In recent days, Transport Minister Louise Haigh labeled P&O as an "unreliable operator," referencing the firing and rehiring of nearly 800 workers two years ago, which had already sparked a storm of criticism at the time. Recently, the Labour government introduced labor law reforms that include a ban on such "fire-and-rehire" practices. To smooth things over, Starmer stated in a BBC interview on Saturday that Haigh's comments did not "reflect the government's stance"—a reversal from the previous week when Number 10 had described P&O as an "unreliable operator" in a press release. On Saturday, DP World expressed a positive response to the Prime Minister's intervention. The company stated: "Following constructive and positive discussions with the government, we have received the clarity we need." The company looks forward to participating in the international investment summit on Monday. A government spokesperson described DP World's decision to proceed with the investment as a "vote of confidence in the stability and seriousness of the government." "We welcome the jobs and opportunities it will create," the spokesperson added. "As our international investment summit will show, Britain is open for business once more." The announcement of the £1 billion investment in London Gateway is expected during the summit, although DP World has not yet confirmed this. Sources close to the company said on Friday that CEO Sultan bin Sulayem still plans to attend the summit despite the ministers' comments, as the company is driven by economic realities rather than politics. The dispute highlights the tensions between the government's efforts to improve workers' rights and its attempts to attract investments from around the world. Some managers invited to the Monday conference voiced concerns about the organization, especially given the government's announcements that the monthly budget will include tax increases. However, Bloomberg founder and former New York City Mayor Michael Bloomberg expressed optimism about the future of the British economy. In The Times, he wrote: "I have never thought much of the threats of the rich to leave a great city [London] over taxes, and as far as businesses are concerned—if taxes are the difference between success and failure, then you don't have a business." "There is every reason to believe that the best days of the United Kingdom lie ahead.