Gateshead refused to agree to a directly elected mayor so the “Northern Powerhouse” deal is unsigned

Theresa May is set to ditch the “Northern Powerhouse” brand and push for a wider industrial strategy across England, the region’s leaders fear.

They believe that she will abandon the ambitious project pioneered by George Osborne to boost economic development in Manchester and other northern cities. She will instead shift the focus to other rural and industrial areas, they claim.

One of the key architects of the strategy warned yesterday that dropping the concept could stop billions of pounds of international investment, including from China, into the North.

Sir Richard Leese, leader of Manchester city council, told The Times that the brand had now caught on across the world and it would be a mistake for the idea to be dropped. “I have to say