The CBI, the struggling enterprise lobbying group, is in talks to sub-let elements of its huge London headquarters because it continues to hunt cost-cutting alternatives within the wake of final 12 months’s near-collapse.
Sources stated the discussions had been at an early stage, and the result was unsure.
Since its brush with insolvency final 12 months, triggered by an exodus of company members which had been horrified by a sexual misconduct scandal, the CBI has closed most of its abroad places of work and made a big chunk of its workforce redundant.
The self-styled “voice of business”, which was initially frozen out of engagement with authorities ministers and officers, has begun to regain its affect in current months.
Nonetheless, its funds stay in a fragile state, with the CBI reliant on a multimillion pound overdraft from various excessive avenue banks.
Its 15-year lease on Cannon Place isn’t thought to incorporate a break clause, with one supply saying the CBI was paying a number of million kilos a 12 months in hire.
One insider stated a relocation from its present HQ on the finish of the lease was possible.
In an announcement, the CBI stated: “Office real estate in the City can command a certain price level for its great location close to lots of big-name FTSE companies and the headquarters of many well-known market leading brands, many of which are in CBI membership.
“Like many companies, on the CBI we provide hybrid working to our hardworking workers throughout the UK, which suggests our Cannon Place workplace has some further capability.
“Conscious of doing everything we can to reduce our overheads we are exploring a range of options that could see us make better use of the space to offset our costs such as making space available to some of the many fantastic firms and trade associations we are proud to represent who do not have access to a central London base for their own staff.
“We observe that different giant enterprise consultant our bodies similar to Ibec in Eire have very efficiently provided their commerce affiliation members the chance to work underneath one roof.
“As any responsible business owner would, when leases come up for renewal on any of our office spaces we will consider carefully what makes best sense for our organisation, how we work and how we best meet with and convene our members.”
Later this month, the CBI will maintain its annual assembly, which can present members with additional perception into the present state of its funds.
It briefly entertained talks final 12 months a couple of merger with Make UK, the producers’ physique, however these had been deserted.
