Who could take over from the CBI?
Britain’s biggest business organisation, the CBI, has been engulfed by a toxic scandal which threatens to see it collapse.
Allegations of rape, sexual attacks and harassment have seen the Confederation of British Industry’s (CBI) brand damaged “beyond repair”, according to one business leader.
A flood of firms announced they were quitting the lobbying group, which states it represents around 190,000 companies after further claims rocked the embattled operation.
Departed leader Tony Danker told the BBC he had been made the “fall guy” for the wider crisis, after his name was wrongly associated with separate accusations including rape.
Danker, who was accused of making staff feel uncomfortable, was set to be replaced by former CBI chief economist Rain Newton-Smith, now of Barclays.
But it is unclear whether she will still take up the post in light of these further exposures.
CityAM has taken a look at the runners and riders to replace the CBI as the key link between government – and the opposition – and industry.
BizUK
Cometh the hour, cometh the strategists.
Wizz kids at public affairs firm WPI, who were behind the Covid Recovery Commision, sprung into action this weekend, forming a new group to represent business interests.
Dubbed BizUK, Nick Faith, WPI’s FTSE-100 director, wrote to firms, describing the organisation as “hopefully temporary”.
He said: “It is clear that businesses operating in the UK need an independent, cross-sector organisation which can ensure they can continue to meet and work constructively with political decision-makers.”
Faith said it would be a key link to the Tories and Labour “in this critical pre-election period”.
Could BizUK take on a more permanent presence in the sector?
Institute of Directors
As the UK’s longest-running professional leadership organisation, the Institute of Directors (IoD) could have a strong claim to the CBI’s crown.
Despite its glossy Pall Mall HQ, it’s thought to have around 20,000 members, so is rather a smaller operation.
But it’s the only other business body with a Royal Charter (dating back to 1906), and is led by a board of top bigwigs, including director-general and Arctic explorer Jonathan Geldart.
Describing itself as “leading the way for professionalism and good governance in business”, could it steer the sector out of the current choppy waters?
Federation of Small Businesses
Another business organisation which many firms rely on for representation is the Federation of Small Businesses (FSB).
Founded in 1974 and currently led by entrepreneur Martin McTague, the FSB works to support SMEs in getting their voices heard in government.
Recent policy successes, according to the organisation, have included securing a £940m reduction in business rates for small firms, as well as freezing the VAT threshold.
While the clue is in the name as to the relative size of their profile, could they step up to the task?
British Chambers of Commerce
The British Chambers of Commerce (BCC) is another top business organisation with a shot at the title.
Having been around since 1860, it claims to be the UK’s most representative lobby group, with members in every sector, region and nation of the country.
The Quarterly Economic Survey is also said to be the largest and most representative of its kind – offering the BCC’s researchers a unique window onto the challenges faced by firms.
It also has a focus on trade, with a customs brokerage service, and runs the BCC annual conference – seen as a key event in the political calendar.
MakeUK
Manufacturers organisation MakeUK is at the forefront of the UK’s manufacturing sector.
Offering training and advice on everything from HR to productivity and apprenticeships, it also hosts a yearly National Manufacturing Day, to boost the profile of its members.
With the CBI having evolved from its roots in British industry, could its successor have a similar legacy?
All of the above?
One voice suggesting a merger of several business groups could be the way to go, is Simon Walker.
Writing in The Times, the former IoD director has called for the IoD, the CBI, the BCC, the FSB and MakeUK to come together as one.
Much like the Trades Union Congress (TUC) within the union movement, a unified body could speak with one voice for businesses of any size.
While it’s not yet known what will emerge of the ashes of the CBI scandal, one thing is clear: this fire is far from out.