For the first time since becoming Prime Minister Sir Keir Starmer has publicly rebuked one of his cabinet ministers – after remarks that appeared to put off a company attending an important investment summit on Monday.
Transport Secretary Louise Haigh said that she had boycotted P&O Ferries in recent years and would encourage other people to do so.
The firm sacked hundreds of workers in one go in 2022 and replaced them with lower paid agency staff.
But P&O Ferries’ parent company, DP World, has now suggested it will not attend the government’s flagship gathering for potential future investors and may postpone an investment announcement because of what the transport secretary said.
“I think we’ll resolve that,” Starmer told the BBC’s Newscast podcast.
When I asked if Haigh had been wrong to describe the company as cowboys and suggest a boycott, he said: “Well, look, that’s not the view of the government.”
It is a view Haigh has set out before, but words mean more when you are a secretary of state.
Responding to the incident, Conservative shadow business secretary, Kevin Hollinrake, said that on the eve of the investment event it was “body blow for the government”.
“[It] shows that Labour cabinet ministers have never been in business, don’t understand business and don’t know how to talk to business. They just haven’t got a clue.” he said.
Senior figures I have spoken to in government are incensed at the suggestion from a senior minister of a boycott – at just the point they are trying to claim they lead a “pro-business” administration.
I understand conversations between the government and the company are ongoing to try to tempt them to turn up on Monday.
Starmer added that he believed the investment summit was evidence of a growing confidence from companies in the UK’s economy.
“I think Heathrow Airport’s had to sort of expand the VIP area, the sheer number of people coming in for our summit,” he said.
But the prime minister could have done without a public row with one of those invited and with one of his cabinet ministers.
This article was originally published at www.bbc.com
