The CBI, the business lobbying group, has negotiated an extension of its overdraft in a fresh move to shore up its balance sheet after a year in which it came close to collapse.

Sky News has learnt that in recent weeks the CBI and a syndicate of high street lenders have agreed an increase in its borrowing capacity.

People close to the talks said it reflected a slower-than-expected return of corporate members to the group, even as it has started to rebuild its credibility under new chairman Sir Rupert Soames.

The CBI teetered on the brink of collapse for much of last year after a sexual misconduct scandal forced out its director-general and triggered an exodus of prominent members.

Read more from Sky News:
CBI scandal: Police ‘not able to progress’ with almost all allegations
CBI settles legal case brought by sacked boss

According to the business lobby group’s most recent annual report and accounts, it was able to survive the aftermath of a sexual misconduct scandal “through the backing of key members, the use of reserves, support from creditors and with bank financing”.

“The bank financing is due to terminate on 30 September 2024, after which it is the board’s current intention to look to renew the facility if required.”

Horizon scandal: More than £1m claimed as Post Office ‘profit’ may have come from sub-postmasters

Thames Water boss refuses to rule out bill increases of up to 40% to secure company’s future

Sam Bankman-Fried: Disgraced ‘crypto king’ jailed for 25 years after stealing billions of dollars from FTX customers

Self-styled as “the voice of British business”, the CBI has been regaining its voice in Westminster, holding private talks with politicians from both main parties.

It has slashed costs by axing a chunk of its workforce and closing most of its overseas offices.

The CBI briefly entertained autumn talks about a merger with Make UK, the manufacturers’ body, but these were abandoned.

A spokeswoman for the CBI declined to comment on its overdraft extension but said: “Like any small or medium-sized business, we have to manage our cashflow and utilise financing to do so.”

Related posts:

Train and bus operators will no longer enforce mask wearing in England from 19 July One in five hospitality and retail workers self-isolating, MPs told Heathrow warns on investment as regulator eyes reduction in passenger charges Rolls-Royce pay award to avert strikes, retail sales fall and mince pie maker deals with soaring costs Goldman lures ex-Bank of England chief as international chair Disgraced crypto boss ‘donated stolen customer funds to politicians’ Russia hikes interest rates as rouble plummets Next lines up £100m FatFace in latest high street takeover deal Caramac bars to be discontinued after more than 60 years Sainsbury’s can’t rule out job losses amid new focus for stores Housing, jewellery and wind turbines What the merger of two major housebuilders could mean for homes being delivered across the UK