CBI 'back at the top table' after coming through crisis, says Rain Newton-Smith
The Confederation of British Industry is “back influencing at the top table” after coming through a major crisis last year which cast doubt over the future of the organisation, its CEO Rain Newton-Smith has told The Yorkshire Post.
Speaking to this newspaper in advance of the CBI’s annual conference this week which included appearances by Chancellor Rachel Reeves and Conservative Party leader Kemi Badenoch, Ms Newton-Smith said her initial time leading the business group had been “really challenging” as it faced a reputational scandal.
But she added the organisation is proving its value in influencing political decisions with both the current and previous Government.
Ms Newton-Smith was appointed following the sacking of previous CBI Tony Danker in April 2023 after he faced allegations about his behaviour in the workplace. The CBI and Mr Danker subsequently agreed an “undisclosed settlement” to settle legal action he had taken against the body.
Further sexual harassment allegations against different CBI staff, which included two accusations of rape, pushed the group into a deep crisis with major companies like John Lewis, Aviva and ITV quitting and meetings with ministers cancelled.
The confederation’s membership dropped from 190,000 organisations down to 170,000 but it managed to stay afloat after winning support from members for a reform plan in June 2023.
Ms Newton-Smith, who was the CBI’s chief economist for close to nine years before briefly joining Barclays and then returning to the business group to lead it, said the organisation’s work played an important part in the permanent introduction of a tax break measure known as ‘full expensing’ announced in November 2023 by then-Chancellor Jeremy Hunt. The measure allows businesses to deduct costs of machinery and equipment investments from tax bills.
She said: “Last autumn we worked quite hard with Jeremy Hunt when he was the Chancellor to ensure that we had full expensing in place – a permanent change to our tax landscape to really incentivise investment.
"At the same time, we made sure Rachel Reeves who was then Shadow Chancellor endorsed that policy because part of our role is to build that consensus across parties on the things that really drive growth.
"I came back to lead the CBI because I had seen the power of what we were able to do when we had the ear of Government when our policy teams and our brilliant leaders across regions like Beckie Hart here in Yorkshire could being that voice across regions and sectors into government and Whitehall and Westminster as well.
“The first three months of the role was really challenging and deeply challenging for all our staff but we are so proud to be back, as we have been for many months, influencing at the top table.
"A new Government now more than ever needs a voice that can talk across some of the challenges we face across sectors. The world internationally is getting a lot more complicated and the thing that really distinguishes the CBI is we are part of some of those international forums and the business equivalent of the G7.
"Just a couple of weeks ago, we brought together many of the metro mayors to talk about industrial strategy and how to help with their local growth plans along with business leaders. When we talk about industrial strategy, we are able to really help make choices about where the UK wants to compete internationally but also make that really resonate in local communities.”