CBI v BCC: British business groups set for showdown

As a weakened CBI votes on its future, rival BCC looks to set up an alternative

The Confederation of British Industry faces a crunch vote on Tuesday as the formerly influential lobbying group tries to secure its future following a series of sexual harassment allegations. PA

On the eve of a day that could decide its future, the Confederation of British Industry is facing competition from a new rival being set up by British Chambers of Commerce.

The BCC has invited business leaders for a round-table meeting in London on Monday to discuss the new business group's offering.

The new lobbying group, the Business Council, is already counting Heathrow, BP, hotel group IHG and the power generator Drax among its new members.

“We have been talking to the nation's largest corporates and it has become clear to us that they are looking for a different kind of representation,” said Shevaun Haviland, director general of the BCC.

“These businesses want to be part of a framework that's rooted in their local communities, but with the ability to shape the national and international debate.”

On Tuesday, CBI members will vote on whether to accept a plan to restructure and revamp the group, following a series of sexual harassment allegations.

Members' confidence in the CBI started to plunge after the Guardian newspaper published allegations of misconduct against the CBI's then director general, Tony Danker, who later resigned.

As more women approached the Guardian claiming they had been victims of sexual harassment while working for the business group, the CBI cancelled its annual dinner and the government began severing ties.

As a lobbying group, the CBI's main function is to make representations to government on behalf of businesses.

By late April, dozens of the UK's major companies had effectively turned their backs on the CBI, prompting the group to come up with a plan to regain confidence.

The CBI's new director general, Rain Newton-Smith, said she will “fight for the organisation”.

Speaking on the BBC's Sunday With Laura Kuenssberg programme, Ms Newton-Smith added that she hoped the CBI was “emerging from what has been a really deep and painful crisis for us as an organisation.”