WARNINGS have been made that the Northern Powerhouse must extend to the North-East as former chancellor George Osborne says the Government is 100 per cent committed to the project.

Mr Osborne launched the Northern Powerhouse Partnership – a think-tank to drive the project forward and help push the agenda of greater powers and investment for the regions – in Manchester yesterday.

The new body, an independent group of politicians, business and civic leaders, which does not yet have an office, will be chaired by Mr Osborne, who has recruited the former mayor of New York, billionaire businessman Michael Bloomberg, to advise the powerful new elected ‘’metro’’ mayors being created in city regions including Manchester, Liverpool and Sheffield.

The future of the initiative, launched by Mr Osborne in 2014, came under question after Mrs May’s arrival in 10 Downing Street in July.

But at the launch of the new think-tank in Manchester today, Mr Osborne said Mrs May’s new administration and Sajid Javid MP, Secretary of State for Communities and Local Government, were now on-board with his ideas after a “little bit of a wobble.”

Mr Osborne said: “They thought about the Northern Powerhouse but they have now committed to it, Theresa May has committed to it, Sajid Javid has committed to it, and across the Government, of course, people whose previous roles they had were also involved in building the Northern Powerhouse, so there’s national Government helping.

“Of course the partnership with Government is important, but the Northern Powerhouse has to be owned by the north, run by the north, it’s got to have enthusiasm in the north.”

Responding to the announcement, Councillor Paul Watson, leader of Sunderland City Council and chairman of the North East Combined Authority said: “Obviously we are 100 per cent behind anyone championing the improvement of the economy outside London. We really believe in devolution so we welcome any help we can get.

“One of the big problems or criticisms people have levied has been that it is too Manchester-centric and we need to be wary of that.

He added: “I think we need to ensure it’s balanced across the North-East.

“It’’s a really important point that it needs to reach all the north and not just the big cities and towns. The rural economy and small towns and villages need to have a solution as well for their economies.”

Earlier this month the Government announced it was shelving legislation to transfer powers to the region.

The deal was withdrawn after four of the seven councils which make up the combined authority voted against signing up. Council leaders have repeatedly expressed reservations about the detail of the Government’s offer, particularly over the issue of the region’s funding following the Brexit referendum vote.