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According to the previous Chancellor George Osborne, Treasury figures suggested that if the northern economy grew in line with the rest of the UK over the next 18 years, it would be worth an additional £44bn in real terms.
That is the equivalent of over £1,600 for each person living in the north.
The hope is to redress the North-South economic imbalance, and to attract investment into northern cities and towns.
A major part of the deal involves devolution - elected mayors with extra funding to promote economic investment and to make decisions about services such as planning and transport.
Not everyone thinks that the Northern Powerhouse will, or can, provide tangible benefits for the north.
The Liberal Democrat leader Tim Farron, the MP for Westmoreland and Lonsdale, recently described the Northern Powerhouse as 'smoke and mirrors'.
"The Northern Powerhouse - giving a boost to the North's economy and giving people more of a say over where they live - is a great idea. To become reality, the Conservatives must match their fancy rhetoric with hard cash.
"The North of England urgently needs investment to support growth and jobs. Rather than continued cuts to local government funding, the government should be investing in transport infrastructure and broadband.
"Unless the government gives proper funding to the Northern Powerhouse, it will remain a grand title with no substance and voters in the North will continue to feel neglected by this Conservative government."
The government has confirmed that Yorkshire MP Andrew Percy is the new Northern Powerhouse Minister.
Mr Percy, the Conservative MP for Brigg and Goole, takes over from Stockton South MP James Wharton.
Mr Wharton has been given a new job as a minister for International Development, as part of Theresa May's ministerial reshuffle.
A man has been arrested on suspicion of making threats to kill in an email to Labour Party leadership contender Angela Eagle.Read the full story ›
A 44 year-old man has been arrested on suspicion of making threats to kill.
Officers from Merseyside Police executed a warrant in Paisley, Scotland, this morning, Friday 15 July, and arrested the man.
He will be questioned by Merseyside detectives today.
The arrest comes after an email was sent to the account of Wallasey MP Angela Eagle.
Alison Mackenzie interviews the Labour leadership contender and Wallasey MP Angela Eagle, and debates Brexit and the Manchester Mayoral contest with Conservative MEP Sajjad Karim and Labour MP for Blackley and Broughton .
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Death threats have been made to Labour's Luciana Berger, with one message allegedly telling her she is going to "get it like Jo Cox did". She has reportedly received a number of emails which are understood to have included an image of a kitchen knife and anti-semitic abuse. The Wavertree MP is believed to have contacted police after receiving the messages on Friday. In a statement Ms Berger extended her gratitude to the police for their "swift action" in dealing with the abuse.
Since she became a Member of Parliament Ms Berger has been the target of a barrage of hate messages in the past - often referencing her Jewish religion She's currently bidding to be Labour's candidate for Metro Mayor of Liverpool. The mayoral election takes place in 2017.
As Owen Smith launches his Labour leadership bid, Angela Eagle has launched her "Keep it Comradely" pledge.
The Wallasey MP told waiting reporters:
This is my clean campaign pledge, I'm going to sign it today and I hope that all of the other candidates in the leadership election, and their supporters, party members up and down the country, will sign up to that pledge.