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 switch in the wind direction will mean the unseasonably bitterly cold air of the last few days finally gives way.
Ebru Umar told ITV News Turkish President Erdogan was 'bullying' her, along with thousands of other journalists.
The Large Hadron Collider at the European Organisation for Nuclear Research suspended operations after a rodent caused an electrical outage.