Early in 2023, it looked as if the Confederation of British Industry might go out of business, rocked by accusations of sexual harassment and a toxic culture. Major companies considered creating a rival organisation, while the chancellor ceased listening to the hitherto leading voice of British business. Two years on, as chair Rupert Soames said at last week’s annual conference, the CBI is in “rude health, with finances, membership and influence restored”.
Much of the credit for this turnaround is due to its director-general, Rain Newton-Smith, a returning former employee whom Soames likened to Cincinnatus, the retired Roman general persuaded to return to lead the empire in a dark hour. She quickly stemmed the exodus of members and won their backing for a set of ambitious reforms that were delivered on time.
Relations have also been repaired with government, slowly with the Tories and now full on with Labour. Last week Newton-Smith and business secretary Peter Kyle co-hosted a round-table with Japanese business leaders. The CBI won at least partial victory in its bid to get it to trim its employment rights legislation – which many Labour backbenchers and voters will view as selling out to business.
But how far the government should go to keep a revived CBI happy is yet another question as, after a disappointing budget, Newton-Smith and colleagues are only likely to get louder in their criticism of Labour for failing to match its promise to put economic growth first with what it sees as the necessary action.
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