P&O owner DP World has put a £1bn expansion of one of Britain’s biggest container hubs on hold after ministers attacked the ferry company’s employment practices.

The Dubai-based business had planned to announce the investment in London Gateway port at a summit convened by Sir Keir Starmer, the Prime Minister, next week.

However, Sultan Ahmed bin Sulayem, the DP World boss, will no longer attend the event after Louise Haigh, the Transport Secretary, and Angela Rayner, the Deputy Prime Minister, described P&O as “unscrupulous” and “exploitative” this week

This relates to the Government’s efforts to strengthen workers’ rights, which includes vowing to close a “legal loophole” that P&O allegedly exploited when sacking almost 800 workers in 2022. 

A DP World spokesman confirmed that the planned investment is under review, Bloomberg News reported.

The move marks a blow to Sir Keir’s efforts to reposition the UK as a country that is open for business, as he aims to catalyse investment at a summit next week.

While Ms Rayner and Ms Haigh have long been outspoken in their criticism of P&O, the language used so close to such a critical event calls into question the degree of coordination between them and Downing Street, as well as the competence of government operations.

When asked about the issue on Friday afternoon, the Prime Minister said: “In the last four weeks we have had at least five or six huge investments in the UK, including £24bn today.

“We have got a massive investment summit coming up on Monday where leading investors from across the globe are all coming to the UK. This is very, very good for the country, very, very good for the future of jobs.”

‘Body blow’