Government suspends relationship with CBI amid Guardian allegations

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The UK government has suspended its relationship with the Confederation of British Industry, as pressure mounts after the Guardian revealed multiple allegations of sexual misconduct by the lobby group’s staff.

Sources said engagement between key Whitehall departments and the CBI had been “paused” pending the outcome of an investigation by the lobby group into a range of fresh allegations, including rape and drug-taking.

The Department for Business and Trade said: “We are postponing ministerial engagement with the CBI until the legal investigation has concluded.”

It is understood that ministers and officials at the Treasury have also stopped holding meetings with the organisation, which represents some of Britain’s leading companies and campaigns on behalf of 190,000 businesses.

The Guardian reported allegations from more than a dozen women who said they had been victims of various forms of sexual misconduct by senior figures at the CBI.

Separately claims have been made about the conduct of its director general, Tony Danker, last month that prompted him to step aside while they were investigated.

Close relations with government are at the core of the CBI’s operation, holding meetings on a day-to-day basis with senior officials and ministers as the country’s leading business group.

The lobby group has access to the prime minister and the cabinet, and campaigns on issues ranging from funding for childcare to tax and skills.

It has cancelled all forthcoming events including its annual dinner in central London on 11 May. The Bank of England governor, Andrew Bailey, had been due to speak at the event but withdrew after the Guardian’s report.

A spokesperson for the CBI said: “We understand the government’s decision to pause engagement pending the outcome of the independent investigation.

“Soon after Easter, the CBI board expects to have preliminary findings and actions from the first phase of the investigation.”