Labour Party Ends Boycott of Scandal-Tainted CBI Lobby Group

Julian Harris
·1 min read

(Bloomberg) -- The Labour Party has ended a boycott of the scandal-hit Confederation of British Industry in a sign of thawing relations between the lobby group and Westminster.

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Jonathan Reynolds, Labour’s shadow business secretary, spoke with CBI Director General Rain Newton-Smith this week, according to people familiar with the matter. The conversation was first reported by the Financial Times, which said it took place online and was “warm and positive.”

Britain’s best-known business group is fighting for survival after dozens of large companies quit following allegations of sexual assault among CBI staff, including two women who said they were raped by colleagues. The government paused engagement with the CBI and hasn’t indicated a willingness to resume high-level meetings.

Read More: CBI Sponsors Abandon Beleaguered Lobby Group’s Annual Conference

Newton-Smith called for ministers to engage with the CBI earlier this month after members backed her turnaround plan, which involved hiring a chief people officer and appointing ethical advisers Principia. A former chief economist at the CBI, she returned after Tony Danker was sacked as director general for workplace misconduct unrelated to the more serious allegations.

While 93% of votes supported her plan for a reset, only 371 ballots were cast — about a third of the group’s roughly 1,200 members.

After the vote, Prime Minister Rishi Sunak told reporters that “matters at the CBI are for the CBI and for its members to work through.”

The CBI declined to comment on the meeting with Reynolds.

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