Allies of the Transport Secretary have accused Sir Keir Starmer of using her as a "scapegoat" in order to save a £1 billion contract with P&O's owners

DP World has declared that it will proceed with the investment, after the Prime Minister's public retraction of Louise Haigh's remarks regarding it.

The United Arab Emirates-based corporation had threatened to withdraw from a significant business meeting following her description of it as a "rogue operator."

But it was persuaded to return to the table after senior officials in No 10 put in a late night phone call to the company to distance itself from her remarks.

DP World confirmed on Saturday night that the announcement of a £1bn investment in a new Thames freeport would now go ahead on Monday as planned.

Sultan Ahmed bin Sulayem, the DP World chairman, is set to confirm the funding at the UK Global Investment Summit which is being held in central London.

A spokesman for the company said: “Following constructive and positive discussions with the Government, we have been given the clarity we need.

“We look forward to participating in Monday’s international investment summit.”

A Downing Street source added: “The reason they’re coming is because overnight we’ve operated as we do with seriousness, warm engagement, and partnership.

“We’ve shown that we are sensible, serious partners. That’s what is bringing these investors in on Monday and that’s how we’ve resolved this.”

The about-turn came after No 10 blamed Ms Haigh for the row, saying comments she made in a broadcast interview on Wednesday had angered the company.

The Transport Secretary had told ITV News that the owner of P&O ferries was a “rogue operator” and encouraged British consumers to boycott it.

Her remarks were a reference to the firm’s decision in 2022 to sack 800 staff, primarily in Dover, and plan to replace them with cheaper overseas workers.

Ms Haigh’s description of P&O as a “rogue operator” exactly mirrored language that was used in a Government press release issued earlier in the day.

The release was issued jointly with Angela Rayner and had been signed off by No 10.

Downing Street, however, appeared to heap all the blame on Ms Haigh, saying that her call for a boycott had been the real source of DP World’s anger.

Sir Keir directly disowned her comments, saying they were “not the view of the Government”.

The approach has angered some Labour MPs who said that Ms Haigh had been punished for stating what was until recently the party’s line on P&O.

Ian Byrne, the Labour MP for Liverpool West Derby, said: “Lou Haigh is right to refer to P&O Ferries as a rogue operator.

“They sacked their entire workforce without notice, via video call replacing them with agency workers.

“These are the practices of a rogue operator which should never be forgotten or forgiven by our movement.”

One Labour MP said they agreed with claims that Ms Haigh had been made a “scapegoat” and questioned why Ms Rayner had not shared any of the blame.

They added that No 10’s decision to prioritise relations with DP World over defending her was “incomprehensible behaviour”.

Another Labour MP said Ms Haigh had been “right to point to P&O’s abysmal past behaviour” and Sir Keir should not have backed down in the face of threats.

They said: “If the company wants to show they’ve changed, and that they’re looking to invest in Britain, this is of course welcome.

“But if they’re threatening to pull investment over fair comment by a minister, then perhaps they haven’t changed much after all.”

‘Completely unacceptable’

Matt Wrack, the head of the Labour-affiliated Fire Brigades Union, also criticised the “briefing” against Ms Haigh as “completely unacceptable”.

“Louise Haigh has the full support and solidarity of the Fire Brigades Union in setting out clear opposition to P&O and other rogue employers,” he said.

Some critics pointed out that Sir Keir whilst leader of the opposition had said the Tories must sever ties with P&O until it reinstated the sacked workers.

The row has raised question marks over the future of Ms Haigh amid suggestions Sir Keir will hold a Cabinet reshuffle early next year.

But The Telegraph understands that her position is not under immediate threat and that the Prime Minister still retains full confidence in her.

Doubts had already been cast about her longer-term future in his top team after she angered No 10 by blindsiding it over the train drivers’ pay deal.

Replacing her could also prove politically sensitive for Sir Keir, given that she is one of the few Left-wing figures to sit around the Cabinet table.