Embattled Confederation of British Industry wins backing of remaining members

LONDON, June 6 (Reuters) - The Confederation of British Industry, one of the country's main lobby groups, won a vote of confidence from its members on Tuesday after setting out reforms aimed at restoring its reputation following a series of sexual assault allegations.

The CBI was thrown into turmoil in March by reports of a rape at a staff party in 2019 and other serious misconduct, which led to government ministers shunning it and companies such as NatWest and John Lewis resigning as members.

Without backing from its members - whose fees provide almost all its income - the CBI would struggle to continue.

In a statement the CBI said 93% of businesses that voted had backed a motion at an extraordinary general meeting in London on whether internal reforms it had proposed "give you the confidence you need to support the CBI."

"After an incredibly tough period, I'm deeply grateful for the faith shown in us by our members," said CBI Director General Rain Newton-Smith, a former chief economist at the CBI who took over after the CBI's board sacked her predecessor.

The vote of confidence from members gives the CBI a path back to restore relations with the government and businesses that have suspended ties with the body, which was founded in 1965.

However, it may face an uphill struggle.

"The CBI is responsible for rebuilding the trust and confidence of their membership and that remains a matter for them," a government spokesperson said.

While the CBI says it represents 190,000 businesses, the vast majority of those are in other trade bodies that are affiliated with the CBI. It does not publish the number of direct members, and only 371 votes were cast in Tuesday's vote.

"Both businesses and government will now want to see clear evidence that the CBI is delivering on its promise to change. A mandate from the members is not enough, on its own," said Ann Francke, chief executive of the Chartered Management Institute.

The CBI has said it will have to cut staff as a result of a loss of members, and on Monday the rival British Chambers of Commerce said it was launching a new business council with members including BP Plc and Heathrow Airport. (Reporting by David Milliken in London Additional reporting by Farouq Suleiman; Editing by William James and Matthew Lewis)