Nick Clegg has hailed government plans for a £5billion regional pot as opening a new era for England's regions.
"This is something that turns a page of decades, generations of over-centralised bossiness from Whitehall," the Deputy Prime Minister told Good Morning Britain.
"I'm really excited because you just get a lot more bang for your buck."
The shadow business secretary has dismissed an extra £5 billion spending on regional growth as falling "far short" of Labour plans.
Labour MP Chuka Umunna said that the Conservative-led coalition had failed to deliver on promises to rebalance England's economy and ensure growth was not concentrated in the capital.
"Instead we've seen things go into reverse as regions and local areas have been held back," he said.
He said that a Labour Government would allow regional authorities to take over £30 billion of spending across the country.
The prime minister David Cameron has said that an extra £5 billion in investment for England's regions over the next five years will help to kick-start growth across theUK outside of the capital.
"For too long our economy has been too London-focused and too centralised. Growth deals will help change all that," he said.
He said that the scheme could turn regional towns and cities in economic "powerhouses" and create thousands of new jobs. "
Deputy Prime Minister Nick Clegg, who chairs the local growth cabinet committee, also hailed the announcement as marking the end of a culture of "Whitehall knows best" and helping to end an over-reliance on the banks and the City of London.
England's regions are set to benefit from an extra £5 billion in investment under Government plans to re-balance the country's economy and create thousands of new jobs outside the capital.
The cash will be allocated to local authorities and businesses through a series of local "growth deals" for investment in projects including building new homes, improving transport links and opening up new training opportunities.
Officials said that the funding, which would be released over five years from 2015, would lead to work on over 150 roads, 150 housing developments and 20 stations as well as create new jobs and training opportunities outside the capital.