LONDON: Port and logistics firm DP World is going ahead with a 1 billion pound ($1.3 billion) investment in its London Gateway port, Britain's government said on Sunday after reports last week that the company had paused the project in protest.

In what had been an embarrassment for the government before a major investor conference, Sky News reported on Friday that DP World had put the planned investment on hold after two ministers criticised practices at its subsidiary P&O Ferries.

DP World declined on Friday to comment on the reports.

On Sunday, business minister Jonathan Reynolds said the investment was going ahead after talks with the Dubai-based company.

"We had to have a conversation following some of the press reports," he told Sky News, adding: "The investment's going ahead, DP World are attending the summit."

In 2022, P&O Ferries made 800 staff redundant with immediate effect, prompting a backlash from politicians and unions who criticised plans to hire cheaper agency workers instead.

P&O Ferries said at the time it had to make swift and significant changes to make the business sustainable.

Last week Deputy Prime Minister Angela Rayner and transport minister Louise Haigh were again critical of P&O Ferries over the incident.

A Bloomberg report published on Saturday said DP World's chairman would stick with the original plan to be part of the event and quoted a DP World statement as formally announcing the investment.

Asked about that report, a spokesperson for the company said in an emailed statement:

"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."

The statement emailed to Reuters did not refer to the status of the planned investment. ($1 = 0.7653 pounds) (Reporting by William James in London and Gursimran Kaur in Bengaluru Editing by Frances Kerry and Emelia Sithole-Matarise)