Scottish Secretary David Mundell has been left out of Theresa May's new economic taskforce - despite the ongoing crisis affecting the North Sea.

No 10 was also forced to deny the new group was a sign of panic following the shock decision to delay approval on a new Chinese-backed nuclear power station.

The Prime Minister yesterday chaired the first meeting of the economy and industrial strategy committee, which includes more than 10 Secretaries of State.

However, Mr Mundell was not a part of the group, despite its remit to ensure that economic growth benefits cities and regions up and down the UK.

The North Sea has been badly hit by a slump in the global price of oil in recent years.

The industry body Oil and Gas UK has also warned of more tough times and jobs losses ahead.

Mrs May surprised world leaders, international investors and industry when she pressed pause on the Hinkley Point project last week.

Officials say the new government needs time to look at the details of the multi-billion pound scheme.

But reports at the weekend suggested that Mrs May had concerns over the national security implications of Chinese investment while she was Home Secretary.

Sir Vince Cable, the former Liberal Democrat business secretary, said that she had demanded strict checks on Chinese companies trying to take over British industries.

China has hit back warning the UK it cannot risk driving away Chinese investors.

The French Government, which partially owns the energy giant set to build the plant, is also understood to be set to demand £2.5 billion in compensation if the project does not go ahead.

The Prime Minister’s official spokeswoman insisted that the meeting of the new committee had been long planned.

She rejected claims that Mrs May was suspicious of Chinese investment, saying that Britain “is open for business; we want to be attracting investment from around the world.”

No 10 also refused to comment on national security fears but said that the review “will be looking at all component parts of the project”.

But Callum McCaig, the SNP's Westminster energy spokesman, said that there was “utter chaos at the heart of UK Government policy”.

“The circumstances emerging around the nuclear plant at Hinkley are symptomatic of these problems – with France set to demand £2.5 billion in compensation if the plans are scrapped.

"Whatever the decision, the continued infighting in the Tory Party looks set to cost the taxpayer a fortune.”

Before the meeting, Mrs May said that one of her top priorities was to create an “economy that works for everyone”.

That required a "strong" industrial strategy, she said.

As well as stimulating growth and wages, the committee is tasked with ensuring the benefits are felt across Britain.

Ministers will focus on long-term economic growth and attempt to solve the so-called productivity problem blamed for holding back the UK economy.

The committee will also look at ways to help young people into the workforce.

Mrs May said: “We need a proper industrial strategy that focuses on improving productivity, rewarding hard-working people with higher wages and creating more opportunities for young people so that, whatever their background, they go as far as their talents will take them.

"We also need a plan to drive growth up and down the country – from rural areas to our great cities.

“If we are to take advantages of the opportunities presented by Brexit, we need to have our whole economy firing.

"That’s why this Committee’s work is of the highest priority, and we will be getting down to work immediately.”

Members of the Economy and Industrial Strategy Cabinet committee include the Prime Minister and the Chancellor as well as the Business and Energy, Work and Pensions, Health, Environment, Culture, International Trade, Education, Defence, Communities and Transport Secretaries.