NEW Morrisons chairman Andrew Higginson has put price cuts at the heart of its recovery plan.

The former Tesco executive who arrived in January and promptly ousted chief executive Dalton Philips as the Bradford-based retailer continued to struggle for market share, says more resources will be freed up “to invest in the customer proposition”.

Mr Higginson, who installed former Tesco colleague David Potts as chief executive, says in Morrisons newly-published annual report and accounts that the grocer “still has many of the attributes and characteristics that made the business such a formidable competitor” and remains the most distinctive of the ‘big four’ supermarket chains.

He states: “On joining the business, the board and I decided that we needed to build on these firm foundations and return the business to growth by improving trading momentum.

“ We now need to up the pace, especially in our core supermarkets, to regain trading momentum. First and foremost this will be done via a relentless focus on the customer.

“We need to put the customer at the heart of what we do – a simple aim, but not easy to do well. However, it has traditionally been one of Morrisons strengths and, I believe, is engrained in our great colleagues across the business. We will free up resources from within the business to re-invest more in the customer proposition – price cuts, but also service and availability."

“We will work harder than before to restore Morrisons value offer and improve all the everyday small details of the customer shopping experience.

“Success measures will be simple – more customers buying more from us.”

The accounts also reveal that Dalton Philips pocketed a bonus of more than £1 million after being treated as a ‘good leaver’ .

Morrisons previously said that the former chief executive would receive a pay-off, including his £850,000 annual salary, other expenses and a then undetermined annual bonus.

The bonus has been confirmed at £1.01 million which, together with salary, pension benefits worth £213,000 and benefits in kind of £28,000 makes a total pay-off of £2.1 million. The accounts show that Mr Philips received a contractual payment covering salary, benefits and pension for the unworked portion of his 12-month notice period.

Morrisons’ remuneration committee deemed Mr Philips to be a “good leaver” for the purposes of his incentive awards and taking into account his contribution to the business through a period of”significant industry change", as well as ensuring a smooth transition to his successor David Potts".

He was awarded a bonus in respect of 2014/15 performance and will receive deferred shares for performance in the 2011/12 financial year. He will also remain eligible for unvested 2013 and 2014 long-term incentive plan awards, subject to performance and a pro-rata reduction