George Osborne has said there is a 'strong case' for more elected mayors to drive growth and development in northern cities and rival London Mayor Boris Johnson.
Speaking on BBC radio 4's Today programme the Chancellor said: "I think there is a strong case for elected mayors in places like Greater Manchester to make sure they have the same powers, the same clout, as the mayor of London does in our capital.
"I think it helps to have a single individual who is, of course, democratically accountable, but also bringing together powers over planning, housing and transport."
He added he wanted to bring together cities like Manchester, Leeds, Liverpool and Hull with new transport links.
George Osborne will say a collection of northern cities linked closer together by new transport infrastructure could "take on the world" as he bids to end London's "unhealthy" economic dominance.
The Chancellor will say in a keynote speech in Manchester today:
We need an ambitious plan to make the cities and towns here in this northern belt radically more connected from east to west - to create the equivalent of travelling around a single global city.
As well as fixing the roads, that means considering a new high speed rail link.
Today I want us to start thinking about whether to build a new high-speed rail connection east-west from Manchester to Leeds.
New railway plans proposed by Chancellor George Osborne mean commuters could soon travel from London to Manchester in just one hour.
In a speech in Manchester today Mr Osborne will say 'we must do more to connect our northern cities.'
The proposed line would be based on the existing rail route between the two cities "but speeded up with new tunnels and infrastructure" to create "a third high speed railway for Britain".
He will also propose a high-speed rail connection east-west from Manchester to Leeds.
A new high-speed rail connection and improved roads between England's northern cities could help create an economic powerhouse to rival London, George Osborne will say today.
He will use a keynote speech to say an upgraded, high-speed link between Manchester and Leeds should be considered as part of the review of the second phase of the HS2 project.
The Chancellor will say he wants travelling through towns and cities in the northern belt to be as easy as moving around a major global metropolis as part of a plan to help them "take on the world".
Under current plans the £50 billion HS2 high-speed rail project will link London to Birmingham in its first stage, before creating a Y-shaped network with lines to Manchester and Leeds by 2032/33.
But concerns about connectivity between the northern cities were raised in the report by HS2 Ltd's chairman Sir David Higgins earlier this year.
More than £13 million of Government money has been made available to fix potholes across the North East and North Yorkshire.
Nearly £8 million is being distributed to North East councils, and over £5 million is being given to North Yorkshire. In total, the Government is giving £168 million to 148 councils in England. They are hoping to fix three million potholes by March 2015.
Northumberland County Councillors today (May 29) agreed to end free transport for students who are older than 16, saving £2.4m a year.
Students from low-income families and those with special needs will not be affected.
The new scheme will come into effect from 1 September. Students already in the scheme will not be affected.
The council says it will work with schools, colleges and other training providers to make sure that older students’ access to education in their own area is continuously improved.
It says it will monitor the impact of the new Post-16 policy on an on-going basis following the changes.
Police have closed a road in Belford, Northumberland, after the level crossing failed.
Officer were called at 8.45am to reports that the barriers are currently stuck in the down position.
Network Rail are at the scene repairing the barriers and have advised this may take most of the day. The road is closed from the A1 Cragmill Road towards Wareham Mill while the repairs take place. Drivers should use the B1342.
Members of the RMT union have announced strike action on the Metro next Wednesday; the day of the One Direction concert at Sunderland's Stadium of Light.
DB Regio, which operates Metro stations and train say it will prioritise moving concert-goers and operate a reduced Metro service.
The Carlisle Settle line was saved from closer 25 years ago today.
This footage is taken from a 1982 documentary voiced by Alan Cartner on the railway line.
Celebrations are due to begin to mark 25 years since the Carlisle to Settle railway line was saved.
It had been threatened with closure since the early 1980s until Michael Portillo, the transport secretary at the time, saved it.
A commemorative train ride will take place later this morning.