England's 39 business-led Local Enterprise Partnerships (LEPs) will benefit from an immediate funding boost worth £500,000 over the next two years.
In 2015, the Government will create a single pot of money, which LEPs can bid from, and spend on projects of their choice.
The money will be taken from capital cash currently allocated to departmental budgets and European Union funding.
In return, the Government will make LEPs set out their long-term plans in Local Growth Deals.
The announcement today comes as the Government responds to Lord Heseltine's plea to devolve greater power to the UK's regions.
More top news
A damp start to the working week with brighter weather for most later in the day
Having a longer pregnancy also reduced the risk of suffering from post-natal depression, a study found.
A gunman has taken two members of staff hostage at the MFA Bowl complex in Nuneaton, its chief executive Mehdi Amshar said.