A £1 billion investment in the UK by the owner of P&O ferries was last night in jeopardy after ministers attacked the firm's working practices.
Prime Minister Sir Keir Starmer was forced to slap down Transport Secretary Louise Haigh - for the second time since the election - over her description of P&O as a 'rogue operator'.
Ms Haigh's comments infuriated P&O's Dubai-based owner DP World, which had been planning to announce a huge new investment at Labour global business summit on Monday.
But yesterday the company told Sky News the decision was under review and DP World boss Sultan Ahmed bin Sulayem will no longer attend the event.
It forced Downing Street to distance itself from Ms Haigh - with a source saying her remarks in an ITV interview were 'her own personal view and don't represent the views of the government', despite them echoing similar comments by herself and Deputy PM Angela Rayner in a press release issued the same day.
There have been suggestion that Downing Street had carpeted the Transport Secretary to protect Ms Rayner.
The pair both slated P&O's widely criticised actions in 2022 when it suddenly sacked 800 British seafarers and replaced them with cheaper staff mainly from overseas.
In an ITV interview on Wednesday to announce new workers' rights, Ms Haigh said: 'I've been boycotting P&O Ferries for two and a half years and I'd encourage consumers to do the same.
'They're a rogue operator. We're cracking down on the way that they treated employees, and we want to see them mirror the standards of other operators that come in and out of Great Britain's waters.
'Make no mistake, this is good for workers and good for business. Cowboy operators like P&O Ferries will no longer be able to act with impunity, undercutting good employers in the process.'
Downing Street's repudiation of her comments come after Ms Haigh was given a dressing down by the PM in August.
She was left red faced after train drivers with the Aslef union in August announced a fresh set of strikes, just 48 hours after the government handed them a 14.25 per cent pay rise.
It comes ahead of the global investment summit on Monday to be hosted by the Prime Minister and Chancellor Rachel Reeves, which is designed to showcase the UK as a place to do business.
The event is already mired in reports of disorganisation and claims that some bosses could withdraw at the last minute.
Dubai-based DP World was expected to have announced a major new investment in its London Gateway container port at the summit, according to Sky.
It would have meant an expansion adding to two new ship berths and a second rail terminal to the site in Essex making it the UK's largest port by volume.
Conservative shadow business secretary Kevin Hollinrake said DP World's decision was 'a body blow for the Government' that shows ministers 'don't understand business and don't know how to talk to business'.
He added: 'Just 100 days in, new investment should be rolling in, not being scared off because of anti-business statements or worries about the impact of Labour's employment and tax policies.'
Sir Keir declined to respond directly to questions about the row yesterday but said the summit 'where leading investors from across the globe are all coming to the UK' was 'very, very good for the country, very, very good for the future of jobs'.
A government spokesperson said: 'We welcome P&O Ferries commitment to comply with our new seafarer's legislation.
'We continue to work closely with DP World, which has already delivered significant investment in the London Gateway and Southampton ports, to help deliver for the UK economy.
'Next week's International Investment Summit will bring together hundreds of global firms to show Britain is open for business.'
DP World was contacted for comment.
