The Government has distanced itself from the Confederation of British Industry (CBI) over allegations of sexual misconduct at the business lobby group.

Both the Treasury and the Department for Business and Trade are understood to have suspended engagement with the organisation while it investigates the claims.

These include rape, sexual harassment and other workplace misconduct, according to people close to the situation.

Sources at Jeremy Hunt’s Treasury and Kemi Badenoch’s Business Department confirmed they are “pausing engagement with ministers”, which means scheduled meetings have been postponed.

The CBI, one of the UK’s largest business organisations, has already postponed all its public events following the allegations.

A CBI spokesman said: “We understand the Government’s decision to pause engagement pending the outcome of the independent investigation. Soon after Easter, the CBI board expects to have preliminary findings and actions from the first phase of the investigation.”

The crisis at the CBI has led it to cancel events, including its prestigious annual dinner, which is regularly attended by the Chancellor and was due to host Bank of England Governor, Andrew Bailey, at this year’s event on May 11.

It said it is investigating “all recent allegations” after The Guardian reported it had been approached by more than a dozen women who said they had been victims of sexual misconduct by senior figures at the lobbying group.

One woman alleged to the newspaper that she had been raped during a staff party in 2019 and was later told by a manager to get counselling rather than pursue the issue further.

The woman said she had not reported the incident to police, and the CBI told the newspaper it had no record of it.

The group launched a separate investigation after its director-general, Tony Danker, was accused of wrongdoing last month.

Law firm Fox Williams was hired by the CBI to oversee an independent investigation in March.

Mr Danker stepped aside from his role a month ago after it was reported that the group was looking into his conduct.

A woman employed by the CBI alleged that Mr Danker had made unwanted contact with her which she considered to be sexual harassment.

Mr Danker apologised for causing “offence or anxiety to any colleague” and said it was “unintentional”.

It is understood the latest allegations are not related to Mr Danker.

Several big firms said they are reviewing their membership of the CBI. A Rolls-Royce Holdings Plc spokesperson said in an emailed statement Wednesday that the “recent allegations are deeply concerning”.

Meanwhile, a spokesperson for audit firm EY said “the allegations about the CBI are extremely concerning,” and that they were awaiting the outcome of investigations.

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