British Chambers of Commerce form Business Council to take on troubled CBI

The CBI business lobby group faced a fresh threat to its future on Sunday as its rival British Chambers of Commerce formed a new group in a bold move to be the voice of Britain’s most prominent companies.

BP and Heathrow are among the companies that have joined the newly formed business council, which the BCC said is part of a “new national offer for businesses”.

Power generation group Drax and hotel group IHG have also signed up as founder members of the council, which the BCC said will “design and drive the future of the British economy”.

This follows some of its key members, including Aviva and NatWest, quitting the CBI following a scandal over allegations of sexual harassment and other misconduct.

BCC Director General Shevaun Haviland said: “Over the past few months, working closely with the Chambers Network, we have been talking to the country’s biggest corporates and it has become clear to us that they are looking for a different kind of representation. are doing.”

“These businesses want to be part of a structure that is rooted in their local communities but with the potential to shape national and international debate.”

BCC leaders will meet with the council’s founders and other potential members in London on Monday, just a day before the CBI will hold an extraordinary general meeting to solicit the support of its members.

The BCC’s formation of a new council for big businesses drew an unhappy response from within the CBI, which has been shut down by government ministers and halted most activities since April.

A person close to the CBI said, “The timing of this is very opportunistic. Business succeeds through a collaborative approach and we find it more effective.”

The CBI, whose membership partially overlaps with that of the BCC, has told staff it will reduce its wage bill by a third after high-profile members suspend or cancel their membership.

Siemens and Microsoft are leading a last-minute campaign to drum up support for the CBI ahead of Tuesday’s vote of confidence in the organisation.

The uncertainty over whether the CBI will survive has raised questions about whether its rival can expand to fill the gap. It could also potentially be replaced by a new organization or merger of other, smaller lobby groups.

The BCC said the new council would focus on UK economy issues ahead of the next general election, including digitalisation, net-zero policies and the future of the high street.

Haviland said Westminster was already preparing for an election before the end of 2024.

Lewis Kingham, UK head and senior vice president for Europe at BP, said: “The UK needs to maintain its international competitiveness and it is imperative that the voice of business is heard.”

Haviland told the FT last month that the BCC was in “talks” with some unnamed, former members of the CBI to join his organisation. He told the body’s annual conference on 17 May that his organization was an advocate “for every business”.