Error creating new MVC project – EF and JQuery

I have had a problem with VS2013 where when I tried to create a new Web Project I would get errors thrown where it could not successfully add references to the project.

failed to initialize Powershell host, for the entity framework and Jquery. The error: The following packages failed to install from ‘C:Program FilesMicrosoft ASP.NETASP.NET MVC 4Packages’

EntityFramework.5.0.0: Failed to initialize the Powershell host. If your powershell execution policy setting is set to AllSigned, open the package manager console to initialize the host first.

jQuery.1.7.1.1: Failed to initialize the Powershell host. If your powershell execution policy setting is set to AllSigned, open the package manager console to initialize the host first.

To resolve the error, launch the PowerShell console with local Administrator rights and run the following command.

Set-ExecutionPolicy AllSigned

Make sure you restart Visual Studio!