MAGGIE PAGANO: Stay of execution for CBI after confidence vote

Even more astonishing than the colossal vote of confidence given to the CBI by its members yesterday was the revelation that the supposedly largest lobby group in the country appears to have only 394 members.

About 371 members participated in the poll — 93 percent of whom supported the CBI — while 23 members abstained or withheld their votes.

What we don’t know from the results is how many of those members – who each had one vote – were direct corporate members or industry associations.

We also don’t know how many members have left in recent months since allegations of inappropriate behavior came out in March, leading to the resignation of Tony Danker, the director general, which then opened the floodgates with separate claims from sex and drug-related misdeeds.

Several prominent members such as the John Lewis Partnership, BMW and ITV have confirmed they are leaving and it is believed that in total around 25 per cent of the total membership have resigned.

But even when you add that number up, it’s still a surprisingly small number of members for an organization that claims to speak on behalf of 190,000 companies, employing nearly 7 million workers — about a third of all private sector workers.

It also explains why the CBI has always been so opaque, if not secretive, about the true extent of its membership.

After the past terrible months, Rain Newton-Smith, the new director general, has to be satisfied with himself.

She managed to get the big boys back on the side. And victory has given her breathing room. But it may turn out to be pyrrhic. Restoring reputations is not easy.

What has been interesting to see in recent weeks is how those who lobbied hardest to keep the CBI alive were not British household names, but foreign-owned giants such as Microsoft, Siemens and ExxonMobil.

These are companies that need the clout that the CBI used to have with ministers. Regaining the trust of the government – which broke off relations after the scandals broke – will be its next big challenge, along with keeping existing members happy.

One of the comments the bosses made regularly since the trouble started is that it made them wonder if being a member of the CBI was worth it. Can Newton-Smith persuade them to stay?

There is already a new girl on the block preparing to take over the CBI, who has successfully loved not only big companies, but also ministers.

That is Baroness Lane-Fox, chairman of the British Chambers of Commerce, who only set up a new internal works council on Monday.

Heavyweights including BP, Heathrow, hotel group IHG and Drax have signed up, demonstrating that the BCC reigns supreme beyond its excellent regional network. Out with the old, in with the new.

Lift the threshold

The formidable Baroness Altmann has a good eye for injustice. Her latest mission to convince the chancellor to raise tax thresholds on savings income is perfect.

With interest rates rising, another 6 million or so savers will pay tax on their returns.

For a Conservative government to set such ridiculously low thresholds should be anathema to its philosophy of rewarding those who work.

But philosophy – or even principle – does not penetrate the brain of the Treasury, where nothing is sacred in the quest to raise more and more taxes.

Still, Jeremy Hunt needs to listen carefully to the former Pensions Secretary.

Altmann makes the excellent point that although interest rates are rising, savers are still the losers in real terms, as returns lag the rate of inflation.

She also has logic on her side. Encouraging people to save instead of spend can reduce inflation. Unfortunately, logic isn’t a concept that has much impact on Hunt or the Treasury.

Green core

Sir Keir Starmer has become such a seasoned rookie that even the unions are furious with him.

GMB has joined Unite in attacking Starmer over his disastrous plan to ban all new oil and gas developments in the North Sea if elected.

They claim the ban will lead to tens of thousands of lost jobs, even weaker energy security and higher emissions from imports.

They are right. Rishi Sunak should make life difficult for Labor by granting as many new North Sea licenses as possible before the next election.

He could even do the unions a favor.