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CBI: Scandal-hit business group wins survival vote CBI: Scandal-hit business group wins survival vote
(32 minutes later)
CBI head Rain Newton-Smith said the result was an "important milestone"CBI head Rain Newton-Smith said the result was an "important milestone"
Business lobby group the CBI has won a key confidence vote over its future after members gave their backing following a series of scandals. The CBI has won a key confidence vote over its future after members overwhelmingly backed the lobby group following a series of scandals.
The CBI said that 93% of those members who voted backed proposals set out to reform the organisation. The CBI said that 93% of the 371 members who voted backed its plans to reform the organisation.
In total, 371 members voted. The CBI says on its website it has 700 member organisations but it is not clear if that is a current figure. It is not clear how much of the CBI's entire membership this represents.
It is not yet clear if the government will re-engage with the lobby group. It says on its website that it has 700 member organisations but following misconduct allegations, firms and associations have left the group.
Meanwhile some companies, who suspended their membership of the CBI but were eligible to vote, told the BBC they would not take part in Tuesday's ballot.
The CBI refused to say how many members it has.
The BBC's business editor, Simon Jack, said it was unclear how ringing a mandate this was.
The CBI by its own admission says it will be a smaller organisation. It is too soon to say they're in the clear. This is the beginning of their mission to establish trust.
The government is yet to comment on whether it will re-engage with the lobby group.
The CBI's core function is to speak to the government on behalf of thousands of UK businesses.The CBI's core function is to speak to the government on behalf of thousands of UK businesses.
The government paused any activity with the CBI following allegations of sexual misconduct at the group which were revealed in the Guardian newspaper.The government paused any activity with the CBI following allegations of sexual misconduct at the group which were revealed in the Guardian newspaper.
A number of companies suspended their membership of the CBI but were allowed to take part in Tuesday's vote. Danni Hewson, head of financial analysis at AJ Bell, said the business lobby group still faced "a long and tortuous slog back from the brink", adding it would take time to rebuild confidence.
However some, such as BT, said they would not vote on Tuesday. "It's bought a little of that time today but if it can't win over the government, if it can't find its way back into the room, then it has no real value."
While the CBI claims to speak for 190,000 firms, not all of these are direct members - the number of which is thought to be substantially smaller.While the CBI claims to speak for 190,000 firms, not all of these are direct members - the number of which is thought to be substantially smaller.
The lobby group works with trade associations which represent thousands of firms, such as the National Farmers' Union which has 50,000 members.The lobby group works with trade associations which represent thousands of firms, such as the National Farmers' Union which has 50,000 members.
At Tuesday's vote, each member had one vote each regardless of size. That means that a trade association that might represent thousands of companies had one vote.At Tuesday's vote, each member had one vote each regardless of size. That means that a trade association that might represent thousands of companies had one vote.
Following the result of the ballot, Rain Newton-Smith, director general of the CBI, said:  "After an incredibly tough period, I'm deeply grateful for the faith shown in us by our members.Following the result of the ballot, Rain Newton-Smith, director general of the CBI, said:  "After an incredibly tough period, I'm deeply grateful for the faith shown in us by our members.
"We've made real progress in implementing the top-to-bottom programme of change promised by the board and, while there remains work to do, today's result represents an important milestone on that journey.""We've made real progress in implementing the top-to-bottom programme of change promised by the board and, while there remains work to do, today's result represents an important milestone on that journey."
Although the CBI has won the backing of its remaining members, a recent exodus of fee-paying companies is already affecting the organisation.Although the CBI has won the backing of its remaining members, a recent exodus of fee-paying companies is already affecting the organisation.
It recently said it would have to make job cuts in order to slash its wage bill by a third. In its most recent public accounts, for 2021, the CBI reported income of £25m, of which £22m came from membership fees.It recently said it would have to make job cuts in order to slash its wage bill by a third. In its most recent public accounts, for 2021, the CBI reported income of £25m, of which £22m came from membership fees.
That is expected to fall for the current financial year following the number of companies who have quit the lobby group or let their memberships lapse.That is expected to fall for the current financial year following the number of companies who have quit the lobby group or let their memberships lapse.
The CBI employs about 250 people in the UK and has offices overseas.The CBI employs about 250 people in the UK and has offices overseas.
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