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PM'S OSBO VETO

Theresa May promises overhaul of Osborne’s economy to make Britain £150 billion richer

The PM wants to tackle the wealth gap by creating "an economy that works for all"

composite may and george

THERESA May yesterday ordered a complete overhaul of George Osborne's economy to make Britain at least £150 billion richer.

She tasked ministers with closing the gap between the powerhouse South East and other regions that are lagging behind by forging “an economy that works for all”.

 Theresa May wants to drive growth in the South West and Wales as well as the Northern Powerhouse
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Theresa May wants to drive growth in the South West and Wales as well as the Northern PowerhouseCredit: PA:Press Association

The pointed phrase was seen as a clear dig that David Cameron and George Osborne’s six years in charge of the economy has failed to deliver for hard-working Brits nationwide.

The first meeting of her 11-strong economic mini-Cabinet heard even halving the chasm would make the economy nine per cent bigger.

 May's decision to overhaul the economy has been seen as a dig at former Chancellor George Osborne
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May's decision to overhaul the economy has been seen as a dig at former Chancellor George OsborneCredit: PA:Press Association

The figures were delivered by new Chancellor Philip Hammond – suggesting he is unimpressed at what he has found at the Treasury.

Senior ministers also discussed how to fix Britain’s shocking record on productivity, which is seen as the key problem holding the economy back.

Recent figures showed our output per worker in the UK has fallen further behind other nations than at any time since records began as Mr Osborne failed to get to grips with the issue.

 New Chancellor Philip Hammond has reported that the economy could increase by nine per cent
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New Chancellor Philip Hammond has reported that the economy could increase by nine per centCredit: Fame Flynet

In an attempt to get the whole nation firing, Mrs May’s new strategy will see huge investment in skills, a bid to attract the industries of the future and wholesale support for business and enterprise.

While Mr Osborne focused on his pet Northern Powerhouse project, the new PM will try to drive growth in other regions like the South West and Wales at the same time.

She has vowed to boost cities outside of London so they play their part in making the UK richer.

And doors will be thrown open to foreign investment as the UK breaks away from the EU.

 The predicted results of May's economy overhaul
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The predicted results of May's economy overhaul

A Number 10 spokesman said “At the first meeting of the Economy and Industrial Strategy Committee earlier this afternoon, the Prime Minister emphasised that the objective of the Government’s new industrial strategy should be to deliver an economy that works for all.

“Cabinet Ministers agreed that an effective industrial strategy must build on the advantages and recognise the disadvantages of different places and establish how areas of the country that have not shared in recent industrial success can have a positive economic future.

 Mumbles in Wales could be one of the places to benefit from May's new economy plans
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Mumbles in Wales could be one of the places to benefit from May's new economy plansCredit: Getty Images

“The discussion also underlined that Britain is open for business, we continue to seek investment from around the world and we will continue to be a strong advocate for free trade. Moving forward, we should be encouraging British businesses to seize the opportunities of Brexit.”

The new committee is made up of Secretaries of State from 11 Government departments, including Chancellor Philip Hammond, Business and Energy Secretary Greg Clark, International Trade Secretary Liam Fox and Work and Pensions Secretary Damian Green.

 Heavy-weight Tories Lord Hague and Lord Heseltine have both backed Theresa May's decision to review the Hinkley Point deal
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Heavy-weight Tories Lord Hague and Lord Heseltine have both backed Theresa May's decision to review the Hinkley Point dealCredit: Getty Images

It came as two Tory big beasts backed Mrs May over her decision to review the Hinkley Point nuclear deal.
Former Tory leader Lord Hague and Lord Heseltine both said she’d made the right call.

Lord Hague said: “Theresa May is quite right to take the time necessary to evaluate the Chinese role in our nuclear power.”

And Lord Heseltine, the former deputy prime minister, added: “She’s fully entitled to ask those basic questions. That is not anti-infrastructure; it is pro-national security.”

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