Councils across the region are set to be given powers to pool resources to help boost transport, housing and jobs through closer working.

Communities Secretary Hazel Blears yesterday revealed that authorities in the Leeds City Region have been picked for the new scheme. They have entered in to Multi Area Agreements (MAAs), which set out what are the biggest local priorities.

Ms Blears said: "We have seen a major transformation in our city centres since 1997 but we know there are still pockets of deprivation in and around them that must be tackled. By strengthening city-regions and giving all local councils a new duty to promote jobs and tackle worklessness we are giving local leaders real tools to spread prosperity and improve quality of life for all."

She said there was no top-down Government imposed approach to MAAs but it would be councils working together to come up with proposals that recognise distinctive needs. Ms Blears argued the move would free councils from "excessive" Whitehall control but establishing the "right framework" to help them deliver the best outcome.

The Leeds City Region - Bradford, Barnsley, Calderdale, Kirklees, Leeds, Wakefield, York, North Yorkshire, Selby, Craven and Harrogate - will work on a range of projects together.

Chairman of the Leeds City Region leaders board and Birstall and Birkenshaw councillor Robert Light said: "The opportunity extended by Government to seek to develop an MAA for the Leeds City Region in the first wave is to be warmly welcomed.

"Our city region development programme has identified clear potential to focus MAA development on the key economic drivers of improving transport connectivity and addressing labour market skills gaps."