Sunak seeks to boost business links amid crisis

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

Sunak's Conservatives and the main opposition Labour party are jockeying for position ahead of a general election expected next year.

The Tories, traditionally regarded as the party of business, have lost ground with the cost of living crisis and after former premier Liz Truss sparked chaos with unfunded tax cuts last year.

Sunak told business leaders on Monday that his so-called "Business Connect" platform will 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 after the nation's business lobby was rocked by fresh rape allegations.

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

Read also

Signs of hope for China property market, but boom is over: analysts

"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 also broadcast on social networking site LinkedIn.

The UK remains plagued by double-digit inflation that has sparked a cost-of-living crunch, prompting calls from many employers for the government to do more to stimulate economic output.

Hospitality, retail and tourism chiefs have also called for Sunak to reinstate tax-free shopping for tourists.

Monday's 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," added Sunak.

"We are bringing together some of the UK's biggest companies and investors for meaningful dialogue -- and I'm a prime minister passionate about working with business to unlock opportunity and progress."

Read also

Asian markets track Wall St losses on rate, recession fears

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

"After 13 years, the pattern of Tory economic failure is grinding on," said finance spokesman Pat McFadden.

"Families in Britain are being harder hit by price rises than many comparable economies."

The Conservatives have been in power since 2010, including an initial five years in coalition with the Liberal Democrats.

Monday's initiative comes as the business community reels from recent events at the CBI, which earlier this month sacked its director-general Tony Danker after misconduct allegations.

Danker is not linked, however, to reports of two allegations of rape said to have involved CBI staff.

The CBI on Friday decided to suspend all activity until an extraordinary general meeting in June.

Source: AFP