Britain to look beyond London to help boost economy

Britain aims to tackle the economic divide between London and the rest of the UK, the government said on Tuesday as part of efforts to boost the economy.

Business Minister Greg Clark urged the government to look beyond London during the first meeting of the Economy and Industrial Strategy Committee.

The new group was formed by Prime Minister Theresa May in the wake of voters' decision last month to leave the EU.

"(Clark) pointed out that the government should do more to support cities outside of London contribute more to the economy," a government spokesperson said.

Eleven ministers taking part in the meeting discussed topics such as opening up to new industries, while addressing the gap between the capital and the rest of Britain was high on the agenda.

"Much of the discussion focused on ways the government could support economic growth in different areas of the country," the spokesperson added.

Londoners voted to remain in the EU but were outnumbered by leave voters elsewhere in Britain, where economic development has failed to keep up with that of the capital.

Finance Minister Philip Hammond said GDP could jump by nine percent if the productivity gap between the south-east area and London and the rest of Britain were halved.

During the committee meeting ministers said a new strategy was needed to help areas "that have not shared in recent industrial success" to have a positive future.

The government is seeking a new blueprint for growth following the Brexit referendum, which sent the pound plunging and raised concerns about the future of Britain's economy.

Although the committee said Britain would continue to seek foreign investment, it made no mention publically of a massive nuclear project involving France and China.

- 'Golden era'? -

French energy giant EDF on Thursday approved the £18 billion ($24 billion, 21 billion euros) Hinkley Point plant in south-west England, a joint project with China General Nuclear Power Corporation.

But Britain delayed its final approval of the deal, with Clark stating the government would review the project before taking a decision later in the year.

China reacted to the unexpected British response with a warning that Beijing's investment in the country could be suspended unless the Hinkley Point deal went ahead.

Tian Dongdong, a writer with China's official Xinhua news agency, said in a commentary that the delay "adds uncertainties to the 'Golden Era' of China-UK ties".