The CBI business lobby faced a new threat to its future on Sunday as rival British Chambers of Commerce created a new group boldly becoming the voice of Britain’s most famous companies.
BP and Heathrow are among the companies joining the new business council, which the BCC says is part of a “new national business proposal”.
Power generation group Drax and hotel group IHG have also signed up to be founding members of the council, which the BCC says aims to “design and drive the future of the UK economy”.
Previously, some key members of the CBI, including Aviva and NatWest, abandoned the CBI following a scandal over allegations of sexual harassment and other misconduct.
BCC Director General Shevaun Haviland said: “Working closely with the Chamber Network over the past few months, we have been talking to the largest businesses in the United States and it is clear to us that they are looking for a different kind of representation .”
“These businesses want to be part of a framework that is rooted in local communities but capable of influencing national and international debates.”
The BCC’s leaders will meet the council’s founders and other potential members in London on Monday, a day before the CBI holds a special general meeting to seek support from its members.
The BCC’s creation of a new big business committee has sparked discontent within the CBI, which has been frozen by government ministers and has halted most activities since April.
A person close to the CBI said: “The timing of this is very speculative. Businesses succeed with a collaborative approach and we find that to be more effective.”
The CBI, whose membership partially overlaps with the BCC, told staff it would cut payrolls by a third after high-profile members suspended or canceled their memberships.
Siemens and Microsoft have been making a last-minute effort to support the CBI ahead of Tuesday’s vote of confidence in the CBI.
Uncertainty over CBI’s survival has raised questions about whether its rivals can scale up to fill the void. It could also be replaced by a new organization or other merger of smaller lobby groups.
The BCC said the new committee would focus on issues in the UK economy ahead of the next general election, including digitalisation, net zero policy and the future of the high street.
Haviland said Westminster was already preparing for an election before the end of 2024. “Businesses need to be heard loud and clear, and now is the right time for us to do so,” she said.
Louise Kingham, head of BP UK and senior vice-president of Europe, said: “The UK needs to maintain its international competitiveness and listening to the voices of business is critical.”
Haviland told the Financial Times last month that the BCC was in “conversations” with some unnamed former CBI members about joining her organisation. Her organization is an advocate for “every business,” she told the agency’s annual meeting on May 17.