Business group engulfed by row over its new boss

THE British Chambers of Commerce’s longest-serving chief executive has quit its board amid a row over the appointment of its new director general.

Dr Ian Kelly, chief executive of the Hull and Humber Chamber of Commerce, has resigned as a non-executive director of the BCC board.

It comes amid dissatisfaction among chamber members at the ousting of John Longworth as director general of the BCC and his replacement by former policy chief Dr Adam Marshall. There are also fears that the organisation has come to be dominated by a London clique.

Longworth quit before the European Union referendum in June after attracting the ire of the Government by backing Brexit.

He said he was personally in favour of leaving the EU as the Remain campaign gathered pace, and he was suspended before resigning days later. At the time the Mail revealed that David Cameron’s special advisor Daniel Korski had an angry telephone conversation with Longworth, which was followed by a flurry of emails between members of the BCC board.

Longworth quit shortly after his suspension and was replaced by policy advisor Marshall in a temporary capacity. Earlier this month, he was given the role permanently. But now many senior figures are speaking out about the appointment.

One source said: ‘We were uncomfortable when John resigned – to some of us it didn’t look pretty, but we held our tongues for the good of the chamber. But this is a bit hard to swallow and I think Ian’s resignation reflects that.’

Kelly, who has run the Hull and Humber branch of the chamber for 22 years, is believed to have raised concerns about the organisation’s direction. He will stay on at his local branch, but has left the board of the BCC after three years as a non-executive director.

‘As father of the house, I’ve served the chamber for over a quarter of a century, but have been concerned at recent events and have resigned the BCC board,’ he said last night.

Two insiders have told the Mail there is a growing feeling that bosses were no longer interested in the issues affecting small and mediumsized firms up and down the country. One said: ‘There are lots of London bubble people on the executive team who don’t really understand the way it should work.’

Senior figures are also worried that Marshall does not have a detailed grasp of British business.

He grew up in Washington DC before attending Yale and Cambridge universities, where he gained a PhD in international relations.

Marshall, 38, was appointed as the BCC’s policy director in 2009, a role that involved liaising closely with Downing Street. His online CV makes no mention of any experience in the private sector.

A source warned that change at the top would be needed if the BCC was to be able to influence the Brexit negotiations.

‘There’s a genuine question about how Adam can advise the Government about Brexit on behalf of businesses,’ they said.

A spokesman for the BCC said Kelly had resigned four weeks before Marshall’s permanent appointment was announced. He said: ‘The reasons for Dr Kelly’s resignation are a matter for himself and the board. We consulted with all the chief executives before the appointment and it was a very robust process.’