Rishi Sunak seeks to repair government's tarnished economic record

Prime Minister Rishi Sunak sought to repair the government's tarnished economic record, reaching out to the business community rocked by a scandal engulfing the Confederation of British Industry (CBI).

Sunak's Tories and the main opposition Labour Party are jockeying for position ahead of next year's national election.

The Tories, long known as the business party, have lost popularity in a cost-of-living crisis as inflation remains high – and after former prime minister Liz Truss created market chaos with unfunded tax cuts last year.

"We are going to keep engaging to make (Britain) the most pro-business, pro-growth country in the world," Sunak said in an address that was broadcast on social networking site LinkedIn.

Sunak, who was UK finance minister before leading the country, said his 'Business Connect' platform would enable companies to engage directly with his administration.

The news comes as a small number of high-profile firms withdrew from the CBI on Friday (21) after the nation's business lobby was shaken by fresh rape allegations.

Current finance minister Jeremy Hunt, addressing the gathering of chief executives and other business heads, said the government was "very concerned about the allegations of what's happened at the CBI.

"They are very, very serious."

He added: "It is not for us to decide who business wants to engage with but we are not going to wait for a reincarnation of the CBI or whoever, we want to engage the whole time, every week, every day, with business."

The CBI later announced that it had dismissed "a number" of "culturally toxic people" while its president Brian McBride apologised for having let down staff.

He admitted that the CBI failed to "act properly" when internal allegations were made, trying to find resolution in sexual harassment cases rather than dismissing the perpetrators.

"This... was our most grievous error, which led to a reluctance amongst women to formalise complaints," he said.

"It allowed a very small minority of staff with regressive -- and, in some cases, abhorrent -- attitudes towards their female colleagues to feel more assured in their behaviour, and more confident of not being detected.

"And it led victims of harassment or violence to believe that their only option was to take their experiences to a newspaper."

Business Connect will look to boost economic growth, Sunak insisted Monday before an audience of more than 200 high-profile business figures.

The UK remains plagued by double-digit inflation, prompting calls from many employers for the government to do more to stimulate economic output.

Hospitality, retail and tourism chiefs are calling for Sunak to reinstate tax-free shopping for tourists, a perk ended by Brexit.

The event focused partly on growth sectors, including advanced manufacturing, life sciences and technology.

"Business Connect provides the next fantastic opportunity to demonstrate how we are growing the economy," insisted Sunak.

However, Labour slammed the announcement and accused the government of mismanaging the economy.

(AFP)