AN economic 'war cabinet' is to be set up in the East Midlands in response to the current global uncertainty, it has been revealed.

It will be similar to the national one set up by Prime Minister Gordon Brown.

The plan was announced by Phil Hope, Minister for the East Midlands, at East Midlands Development Agency's (Emda) annual public meeting in Leicester yesterday.

Mr Hope, along with Emda chairman Dr Bryan Jackson and chief executive Jeff Moore, will sit in the cabinet.

It is expected to include another two to three members from the private and public sectors whose names will be announced in the next two weeks.

Mr Hope, who will chair the cabinet, said: "It will produce strong and effective leadership in the region and will be able to much more swiftly respond to the changing environment."

The minister will also set up a regional forum of key business and public figures to address the impact of the current economic crisis on the East Midlands.

Dr Jackson said: "The cabinet would be able to quickly respond to a large crisis affecting the economy, such as major flooding, a foot-and-mouth outbreak or a major problem in a particular sector.

"Emdaó has a good history of getting groups together, but we've never had the power of a minister to do it before."

The annual meeting, hosted by BBC news broadcaster Nicholas Owen, was attended by more than 300 people.