Ministers today announced a further six of England's largest cities have secured deals to gain more powers over economic growth.

Birmingham, Bristol, Leeds, Newcastle, Nottingham and Sheffield join Liverpool and Manchester as core cities given greater controls over investment, supporting local business, driving infrastructure development and delivering local skills training.

The Yorkshire cities of Leeds and Sheffield will follow Manchester’s example in forming a combined authority, drawing together constituent local authorities to make strategic spending decisions - with Newcastle set to work with seven councils in the North East to do likewise.

In exchange for striking the deals for economic levers, the cities have agreed to establish accountable local leadership and make efficient use of additional resources.

Deputy prime minister, Nick Clegg, said the groundbreaking deals signal a dramatic power shift – freeing the eight core cities from Whitehall control. 'They are the economic powerhouses of England – so it makes sense that the cities decide for themselves how to boost their local economies,' said Mr Clegg.

Cities minister, Greg Clark said: 'Our major cities have seized the opportunity to take control of their economic destiny and will now reap the benefits of new financial freedoms and investment opportunities available to them.

'Now we have concluded the first deals, we will shortly set out next steps for this radical extension of power to other places across the country.'

According to Cllr Peter Box, who is chair of the Local Government Association’s economy and transport board - and also chairman of the Leeds City Region Partnership - the announcement marks a major first step towards delivering city region priorities and could lead to an even greater devolution of power from Whitehall to the regions.

'We will now have a much bigger say in what happens in our region and can use our local knowledge to get resources to the areas which need them most,' said Cllr Box. The leader of Wakefield Council added better links to national and international business and trade would open up opportunities for the whole Leeds City Region – with the potential fund of £400m helping underpin the local economy.