The high street lender NatWest Group is considering rejoining the CBI as it weighs taking part in a rescue funding package to salvage the business group’s future.
Sky News has learnt that the prospect of the CBI re-engaging with the government has persuaded NatWest to mull a resumption of its subscription.
A final decision has yet to be taken, and some insiders remain sceptical about the move, but if confirmed, it would represent a major boost to the lobbying group’s survival prospects.
NatWest was among the major companies – alongside the likes of Aviva and John Lewis Partnership – which terminated their membership in the spring after the emergence of a sexual misconduct scandal.
None of the other major high street banks cancelled their membership at the time.
Earlier this week, Sky News revealed that the chancellor, Jeremy Hunt, had agreed to meet the CBI in the run-up to November’s autumn statement – making him the first cabinet minister to do so in months.
One source said that prospective re-engagement had persuaded NatWest to reconsider its exit from the group.
Treasury sources confirmed that Mr Hunt would attend a meeting five months after he declared that there was “no point” engaging with the CBI.
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On Wednesday, CBI president Brian McBride and director-general Rain Newton-Smith told members they were confident of addressing its short-term financing challenges.
City sources said NatWest, Lloyds Banking Group and HSBC were all in talks about providing several million pounds of short-term financing.
They cautioned, however, that a deal had yet to be agreed and that the situation remained “fluid”.
The CBI’s annual meeting, which was scheduled to take place on Wednesday, has been postponed, although it told members that it had restarted its search for Mr McBride’s successor.
This week, it acknowledged its financial travails for the first time, saying it had “experienced some short term cashflow challenges”.
It insisted, however, that it was “in positive dialogue over finalising financing options and are confident that we will be able to resolve this short-term issue and secure the footing of an organisation that remains in a strong medium to long term position”.
Sky News revealed earlier this month that it was in talks with Make UK, the manufacturers’ body, about a tie-up and that it faced running out of cash within weeks.
The CBI is thought to be as little as four weeks from running out of money, with insolvency experts on hand to provide regular advice to its board.
Established by royal charter in 1965, the CBI was rocked in the spring by the resignation of corporate members including Aviva, John Lewis Partnership and NatWest Group.
The crisis has drained the CBI’s cash reserves, forcing it to slash jobs and close overseas offices.
