The CBI, the ailing business group, has acknowledged its financial travails for the first time as it postponed what was set to be a crucial annual meeting this week.
Sky News has seen a message from the CBI to members which admitted 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”.
The AGM postponement is the latest chaotic chapter in a dire year for what was once Britain’s most influential business group, which was brought to its knees in the spring by a wide-ranging sexual misconduct scandal.
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.
In its message to members, it said it was “opening-up and refocusing our previously planned AGM” – but stopped short of saying the meeting was being postponed, which it then confirmed in a separate message.
The CBI said it would still update members on Wednesday on its financial position, and pledged to “be more accountable and transparent in our decision-making and work”.
Earlier this week, Sky News revealed the chancellor, Jeremy Hunt, had offered an olive branch to the CBI by agreeing to meet its boss for the first time since it was plunged into crisis in April.
Mr Hunt has agreed to hold in-person talks with Rain Newton-Smith, the CBI director-general, in the run-up to November’s autumn statement.
Treasury sources confirmed Mr Hunt would attend the meeting five months after declaring that there was “no point” engaging with the CBI.
Ministers have refused to interact formally with the CBI since April, but this week a government spokesman said: “We continue to engage with businesses on a case-by-case basis and business groups…
