CBI suffers fresh blow as City’s governing body turns its back
The City of London’s governing body has delivered a fresh hit to the CBI, saying it had joined the ranks of those suspending their membership of the scandal-hit business lobby group.
The City of London Corporation took its decision 24 hours after Britain’s largest employers’ group moved to help restore confidence following a string of resignations and suspensions.
They gathered pace last Friday in the wake of a rape allegation by a second female worker was reported.
The exodus prompted the CBI to suspend its activities.
President Brian McBride revealed on Monday a shake-up of its culture and governance controls – admitting it had failed staff on many fronts over many years, especially on the issue of sexual harassment.
He conceded, in an open letter to the membership, he was unsure whether the CBI would be able to regain trust.
“The recent allegations have revealed a culture of abuse at the CBI that the City of London Corporation strongly condemns,” the body said in a statement.
It added: “The voice of business is an important one and we must ensure it is a voice that people and businesses can trust.”
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CBI chief acknowledges failures
City of London Police has launched an investigation into the allegations, understood to have been raised by at least 12 women according to the Guardian newspaper.
Most are believed to relate to sexual harassment.
Read more:
Once-distinguished and influential CBI has seen its reputation reduced to rubble
Which business have quit or suspended membership of the CBI?
The CBI confirmed on Monday that a number of other members of staff had been dismissed for not meeting behavioural standards in the wake of the sacking of director general Tony Danker a fortnight ago.
It has always made clear that he was not the subject of serious allegations of wrongdoing.
The body has suspended all membership activity until June as it fights for survival, aided by the appointment of its former chief economist Rain Newton-Smith as director general.
Members have, however, criticised the appointment as hasty and the CBI’s handling of the affair more generally.
The chief executive of pub company Adnams, Andy Wood, told Sky News the CBI brand was “probably damaged beyond repair”.
He said of the open letter: “I think a number of the things that are talked about in there should have been in place anyway. And I would have expected that of a representative organisation that is speaking for some of the largest and most well-known companies in the UK.
“So whilst I welcome the letter and the contrition, I’m not sure the, you know, zero tolerance of bullying and harassment, training leaders in recognising bullying and harassment and appointing a chief people officer, go quite far enough and not quite the root and branch reform that was talked about earlier in the week.”
Business
Energy bills to rise again from January but spring falls to come, research firm Cornwall Insight forecasts
Energy bills are to rise again next year, according to a respected forecaster.
Costs from January to March are projected to rise another 1% to £1,736 a year for the average user, according to research firm Cornwall Insight.
The energy price cap, which sets a limit on how much companies can charge per unit of electricity, is also expected to rise, costing typical households an extra £19 a year.
It’s a further increase after energy costs rose 10% from October.
After the latest hike, there were hopes of a fall in the new year, but volatile wholesale gas and electricity markets are still above historic average costs.
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Prices have gone up due to supply concerns arising from Russia‘s war in Ukraine, and maintenance of Norwegian gas infrastructure.
But spring is expected to herald a reduction as is October 2025, Cornwall Insight said.
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‘Energy prices make me depressed’, pensioner Roy Roots said in August
Every three months energy regulator Ofgem revises the cap based on wholesale costs.
The official January price cap announcement will be made on Friday.
It comes as millions of pensioners lost their automatic winter fuel allowance payment after the government means-tested the benefit.
Meanwhile, Cornwall Insight’s principal consultant Dr Craig Lowrey warned “millions” of households won’t heat their homes to “recommended temperatures, risking serious health consequences” with bills on the rise.
“With it being widely accepted that high prices are here to stay, we need to see action,” he said, suggesting options like cheaper rates for low-income homes, benefit restructuring, or other targeted support for the vulnerable “must be seriously considered”.
The energy price cap system is being reviewed by Ofgem with possible changes to the standing charge coming over the next year.
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The long-lasting solution to high energy bills is the transition to UK-produced renewable power, the firm said.
“While there will be upfront costs, this shift is essential to building a sustainable and secure energy system for the future.”
The owners of Scotland’s only oil refinery have rejected a US-led approach about a possible bid for it months before its scheduled closure.
Sky News has learnt that a consortium said to be led by Robert McKee, an American energy industry veteran, wrote to Petroineos, the owner of the Grangemouth site, to express an interest in buying it.
The approach, which is understood to have been made earlier this month, was rejected by Petroineos, which is 50%-owned by the petrochemicals empire founded by the Manchester United FC shareholder Sir Jim Ratcliffe.
The consortium is understood to comprise The Canal Group, which is reportedly developing a green energy refinery in Texas, and Trading Stack, a Middle East-based commodities trader.
Mr McKee spent nearly four decades with ConocoPhillips, one of the biggest energy companies in the US.
Sources close to the situation said that Petroineos had rebuffed the offer in order to concentrate on a publicly announced plan to transform the century-old plant into a finished fuels import terminal.
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They added that the nature of the consortium’s approach had raised questions about its access to financing and expertise in operating an asset of this kind.
The Grangemouth refinery, which employs about 450 people, loses about £200m annually.
Its other shareholder is the state-backed Chinese energy giant PetroChina.
The site is due to close next year.
A person close to the consortium insisted that its financing was robust and said it would assess the feasibility of building a new refinery elsewhere in the area.
They added that the consortium had had “positive interactions” with trade union officials, and believed that there was scope to rapidly make Grangemouth’s refinery operations profitable.
On Monday, a spokesman for Petroineos said: “Since the Petroineos joint venture was formed 13 years ago, our shareholders have invested nearly £1bn in the refinery, only to absorb losses of £600m.
“Last week, the refinery lost £385,000 on average each day and we expect to lose more than £150m in total during the course of this year.
“We have not received any credible or viable bids for the refinery.”
A spokesman for the consortium declined to comment.
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