ALEX BRUMMER: Does British business really need the CBI?

The speed with which the CBI relinquished the services of former director general Tony Danker last year was in stark contrast to the impetuous and secretive way in which the employers’ group handled historic claims of alleged sexual misconduct by colleagues.

Danker protested after the event that he was made a “fall guy” for events that took place before his stewardship began in 2020.

Now he has been largely vindicated after the CBI reached a ‘secret settlement’ with him over a wrongful dismissal claim.

The former director general apologized for personal behavior that may have made fellow CBI officers feel “very uncomfortable.”

But the combination of his behavior with past allegations of rape and sexual assault under his predecessors was unfair and damaging to Danker, a decent public servant, and his family and associates.

The outcome of the Danker case does not focus so much on whether the CBI is worth saving.

The choice of Rupert Soames as the next president (he will not be fully installed until June) is a lifeline.

Soames is a respected executive who has nursed outsourcer Serco back to health through the swings and arrows of the pandemic with mixed results.

In the past, the CBI proved to be a valuable conduit between industry and government and was valued as a voice of business.

Under the leadership of Danker’s predecessor Carolyn Fairbairn, its credibility was damaged due to its support for the Remain camp during and after the Brexit referendum.

In many ways, that damaged its reputation as a voice for the entire business community and brought it into conflict with many in government.

What has emerged in the nine months since the Guardian first shone a light on alleged sexual impropriety is that public life doesn’t really need the CBI.

Long gone are the days when the director-general could be trusted to sit down with the union bosses in Downing Street to resolve industrial disputes.

Most recent conflicts, such as those with health unions, have taken place in the public sector, where the role of the CBI is limited.

Moreover, the business community seems able to deal with the government and the opposition without an intermediary.

The British Chambers of Commerce are a truly grassroots organization with competent central leadership.

Labor was able to put on its own big show of entrepreneurship last week, charging £1,000 per ticket.

CBI surveys largely duplicate the work of other trusted polls, such as the S&P Global/CIPS purchasing managers’ indices, which allow international comparisons.

Rupert Soames may find the magic pill that will restore the CBI’s reputation and put pressure on its finances. But despite the railway union ASLEF, the train has already left the station.

Losing luxury

Finally, the government seems willing to take action on the tourist tax.

Jeremy Hunt promises a review and the Office of Budget Responsibility (OBR) takes action.

It plans an analysis of the costs and benefits of the scheme after then-Chancellor Rishi Sunak abolished the ability for tourists to reclaim VAT on purchases in 2020.

Since then, a campaign by this newspaper, backed by luxury retailers, the hospitality industry and retail locations, has attempted to reverse the decision.

CEBR forecasters estimate that Sunak’s decision will cost the UK economy £11.1 billion a year as visitors flock to Paris and Milan instead.

Fashion empire Kurt Geiger has described the suspension of the privilege as a “schoolboy mistake” that has caused queues at luxury goods stores in Paris as Britain suffers. The blunder is self-evident.

Call down

Vodafone CEO Margherita Della Valle finds herself in the deal-making vortex as she tries to reshape the company.

Live discussions in Italy about a joint venture, a merger with Britain’s Three and national security concerns about key investor Abu Dhabi have grabbed all the attention.

But a slowdown in the dominant German market disappointed in the third quarter. Della Vale is optimistic about the prospects there, citing lower broadband churn and improved fixed and mobile offers.

Unfortunately for Della Valle, investors remain unimpressed.