Treasury Minister Jim O'Neill resigns

Former Goldman Sachs chief economist Jim O’Neill stepped down from his post as Treasury minister and conservative whip after reported tensions with Prime Minister Theresa May.

O’Neill was appointed to George Osbourne’s treasury team last year with responsibility for the northern powerhouse project.

He was perhaps best known for having coined the acronym BRICS for emerging markets Brazil, Russia, India, China and South Africa.

The former minister did not state a reason for his departure apart from saying that he had no further work to do on his review of antimicrobial resistance, which he started before being appointed.

In his resignation letter to Theresa May, he played down speculation that he was unhappy about her cautious approach towards Chinese investment and her replacement of Osborne’s focus on the north with a broader industrial strategy across the whole country.

“I primarily joined, however, for the specific purpose of helping deliver the northern powerhouse, and to help boost our economic ties with key growing economies around the world, especially China and India, and other rapidly emerging economies,” Lord O’Neill wrote.

“The case for both to be at the heart of British economic policy is even stronger following the referendum, and I am pleased that, despite speculation to the contrary, both appear to be commanding your personal attention. I am leaving knowing that I can play some role supporting these critical initiatives as a non-governmental person.”

The Financial Times reported in July he was unhappy with May’s approach to China, which was exposed by her handling of plans for a new nuclear plant at Hinkley Point.

May said she was sorry about his resignation and thanked him for his service.

“You have made a significant contribution to driving forward the government’s work on delivering growth beyond the south-east through the northern powerhouse and on promoting stronger economic links with emerging economies, including China and India. You have laid important foundations in these areas, and the government will build on them,” said May.