Deal marks 'bold new frontier' in devolution, says Michael Gove

The Levelling Up Secretary was in the West Midlands to formalise the deal, which sees the region given greater powers over transport, skills and housing – as well as a new long-term funding pot.

Speaking at a signing ceremony in Coventry, Mr Gove said local leaders such as West Midlands Mayor Andy Street understood the needs of their areas better than decision-makers in Whitehall.

"That is why it is vital that we put more power and control in their hands," he said.

"This deal goes further than we’ve ever gone before. It will give the Mayor unprecedented power to spend on local priorities and more control over transport, skills and housing – the things people truly care about.

"Today marks a bold new frontier in devolution in this country, and it’s fantastic to see the West Midlands right at the forefront."

Mr Street said the deal was a "landmark moment" that would give the region "greater financial autonomy and decision-making authority".

He said: "Devolution is very much a journey and our task now is to work together to show the further trust placed in us is well founded."

New measures include business rates retention for 10 years, a £400,000 partnership with Homes England and £100m funding for brownfield remediation.

The deal also saw £60m for the Wednesbury to Brierley Hill Metro extension and the launch of up to six new 'levelling up zones'.

The West Midlands has also been announced as one of 12 new investment zone areas backed with £80m funding to spur growth.