Business and Trade Secretary Kemi Badenoch has postponed a meeting with the UK's five leading business groups amid the unfolding crisis over sexual misconduct allegations at the CBI.

Sky News understands that Ms Badenoch has called off her next scheduled talks with the so-called B5, which comprises the CBI, Institute of Directors, British Chambers of Commerce, Federation of Small Businesses and Make UK.

Insiders said the meeting had been due to take place shortly after parliament returns from Easter recess.

The postponement of the gathering may stoke fears that the crisis which has beset Britain's biggest employers' group could have a broader impact on the business community's engagement with government at a critical time for the economy.

One insider sought to allay such fears on Wednesday, saying the other members of the B5 were able to liaise with the Department for Business and Trade in the usual way, despite the decision not to go ahead with their next scheduled meeting.

The CBI said this week that it had decided to cancel all external events while an investigation into sexual misconduct and drug-taking allegations reported by The Guardian newspaper was underway.

Other government departments, including the Treasury, have also decided to pause engagement with the CBI during its probe.

Tony Danker, the CBI director-general, has stepped aside until an initial inquiry into allegations against him is concluded.

Matthew Fell, the organisation's chief policy director, has replaced Mr Danker on an interim basis.

One source said a report by the law firm Fox Williams, along with a series of recommendations, was expected to be delivered next week.