Government shuns CBI lobby giant after rape claim

The government has stopped engaging with the CBI business lobby group pending the outcome of an investigation into sexual misconduct allegations.

The Treasury as well as ministers from the Department for business and trade have "paused engagement" with the CBI, the BBC understands.

It comes as the lobby group faces a number of claims, including rape.

The CBI said it understood the government's decision as it awaits the outcome of an investigation.

Law firm Fox Williams has been hired to look into all the allegations facing the CBI. The group said it expects to have "preliminary findings and actions" from the first stage of the investigation shortly after Easter.

The group has postponed all public events in the meantime, including the CBI's annual dinner.

The chancellor is usually the keynote speaker at the flagship event of one of Britain's largest business groups, which represents more than 190,000 companies and lobbies politicians on their behalf to make policies that benefit UK businesses.

The CBI also hosts regular events for business leaders to meet and talk about policies as well as offering research and consultancy services on the economy for its members.

Chancellor Jeremy Hunt was not due to attend this year's dinner, which had been scheduled for 11 May, because he will be out of the country, but the Governor of the Bank of England, Andrew Bailey, had been set to give a speech.

The CBI is at the centre of several misconduct allegations. The most serious is from a woman who claims she was raped by a senior colleague at a CBI summer boat party in 2019.

The woman told the Guardian newspaper, which first published the claims, that she felt let down by a CBI manager who, she said, advised her to seek out counselling rather than pursue the matter further.

The CBI said: "We have found no evidence or record of this matter. Given the seriousness of the issue, it is part of the independent investigation being conducted by [law firm] Fox Williams."

Some company executives, who are members of the CBI, have described this as an existential crisis for an organisation that describes itself as the "most effective and influential" business organisation.

Asked whether it is considering its membership of the CBI, one energy industry insider told the BBC it is speaking to the lobbyist to "understand their processes".

They said once they found out more information, they will "see if there's anything we need to do".

Marks and Spencer told the BBC it had written to the acting director-general of the group to "seek reassurances" that the allegations were being "taken seriously and fully investigated".

The High Street giant said it had also requested information on how CBI staff involved were being supported and "what is being done to give them confidence in the process".

Rolls-Royce, the engineering giant, said the recent allegations were "deeply concerning".

It said it was waiting the outcome of the investigation before considering its membership of the CBI.

Fox Williams is also conducting an investigation into separate allegations made against CBI director general Tony Danker, who joined the CBI in 2020.

Mr Danker recently stepped aside pending an investigation into separate alleged incidents, for which he has "apologised profusely" and claimed "was completely unintentional".

The BBC understands that these new allegations published by the Guardian do not relate to Mr Danker.

A spokesman for the CBI said the organisation "has treated and continues to treat all matters of workplace conduct with the utmost seriousness".

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