Starmer risks ministerial rift with slap down of transport secretary after £1bn investment loss

Prime Minister Keir Starmer has caused a potential rift within his own government by publicly criticising his transport secretary, Louise Haigh, following a significant £1 billion loss in investment. Starmer’s comments came during an interview with the BBC News Newscast podcast, where he addressed Haigh’s suggestion of a boycott against P&O ferries due to the company’s controversial decision to dismiss and rehire 800 employees.

The fallout from Haigh’s comments led to P&O’s parent company, DP World, withdrawing their £1 billion investment in the Thames Gateway just ahead of a major government investors summit. DP World reportedly objected to being labelled a “cowboy operator” by Haigh. During the interview, Starmer distanced himself from Haigh’s stance, stating, “Well, look, that’s not the view of the government.”

However, this public rebuke of his transport secretary may deepen divisions within the government, as it follows earlier claims of a briefing against Haigh to deflect criticism and shield Deputy Prime Minister Angela Rayner. The controversy highlights a potential fracture within Starmer’s inner circle.

Starmer also reflected on his first 100 days as prime minister, acknowledging challenges and setbacks such as issues with donations and staffing. Despite these hurdles, he remained focused on attracting investment to stimulate economic growth, emphasising the importance of creating secure and well-paid jobs across the UK. He reiterated the significance of the upcoming investors summit, expressing confidence in the event’s success despite the recent setback with DP World.

The prime minister’s comments come amidst ongoing efforts to reassure investors and boost confidence in the UK’s economic stability. While DP World declined to comment on the situation, Starmer remains committed to showcasing the country as an attractive investment destination.

The tensions between Starmer and Haigh, coupled with the broader challenges faced by the government, underscore the complexities of leadership and decision-making in navigating economic uncertainties. As Starmer strives to steer the country towards recovery and growth, maintaining unity and coherence within his government will be crucial in overcoming obstacles and instilling confidence among investors and the public alike.

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