Osborne departure threatens '˜powerhouse' future

Mr Osborne’s resignation was announced as Philip Hammond’s appointment to head up to the Treasury was confirmed.

It was not immediately clear with Mr Osborne had been offered other roles in Government or told by new prime minister Theresa May that there was no role for him in the cabinet.

Mr Osborne’s return to the backbenches comes just over a year after he played a leading role in securing the Conservatives’ first majority government since its defeat at the hands of Tony Blair in 1997.

Writing on Twitter tnight he said: “It’s been a privilege to be Chancellor these last 6 yrs. Others will judge - I hope I’ve left the economy in a better state than I found it.

“Thank you to everyone who’s helped me do the job - my ministerial team, great special advisers, and the outstanding Treasury civil servants.”

Mr Osborne wished Mrs May and his successor at the Treasury “good luck” adding: “They have my full support in the big challenge that lies ahead.”

The former chancellor said it had been a “sad, moving day” seeing his “great friend” David Cameron leaving Downing Street.

“He can be very proud of the job he’s done and service he’s given,” he said.

The departure of Mr Osborne is likely to raise concerns in Yorkshire that his ‘northern powerhouse’ initiative will be scrapped by Mrs May.

While there has been a large dose of scepticism in Yorkshire, particularly among political opponents, about the substance of the ‘northern powerhouse’ there was significant agreement that at the very least it had propelled the issue of the economy of the North of England to the top of the political agenda.

Concerns about Mrs May’s commitment to regional economic growth will be further raised if Lord Jim O’Neill, the former Goldman Sachs economist and champion of devolution to northern cities, who was invited to join the Government last year by Mr Osborne follows him out of the Treasury.

Yorkshire council leaders will also be keenly awaiting the appointment of the next Communities Secretary, a key figure in the ongoing negotiations over plans for more parts of the region to follow South Yorkshire in agreeing ‘devolution deals’ to take more control over their own affairs.

Haltemprice and Howden MP David Davis’s appointment will be seen as a welcome move for the region which gives the region a voice at the Government’s top table.

Yorkshire has been significantly under-represented in the senior echelons of Government since Lord Hague stood down at the last election having previously held the roles of foreign secretary in leader of the commons.

The early appointments were surprising not just for the individuals chosen but also for the fact they were dominated by men following expectations that women would be among those promoted.

Amber Rudd’s appointment as Home Secretary was the only one of the first six announcements made last night to go to a woman.

That decision puts her round the same cabinet table as Boris Johnson with whom she clashed during the referendum campaign.

It was noteable that Chris Grayling did not receive one of the major Government jobs despite leading Mrs May’s party leadership campaign.

There was speculation tonight that he could now be handed the role of Conservative Party chairman given his popularity with the party’s grassroots.

Andrea Leadsom, who was Mrs May’s rival for the Conservative leadership until quitting the race on Monday, has also yet to be given a job despite fellow Leave campaigners David Davis, Liam Fox and Boris Johnson all being handed roles.