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
Wet weather to end the weekend.
The widower of murdered MP Jo Cox has quit two charities set up in her memory after sexual assault allegations from his past resurfaced.
A cold and frosty night so a freezing start for those up bright and early.