Billions will be invested in Yorkshire from a series of Growth Deals, Government has announced.
Thousands of jobs will be created in the region as part of the scheme.
The first wave of investment includes £6bn of local projects including a new National Agri-Food Campus in York, aimed at helping the area become a global leader in food manufacturing.
The funds will also boost agricultural technologies, bio-renewable sectors and create up to 800 jobs.
Sheffield’s Glass Academy will also receive a portion to train people to work in glassworks.
Leeds City Region Enterprise Partnership has signed a £1bn contract with Government to accelerate economic growth in the area and create thousands of jobs.
Sheffield City Region will receive £320m over six-years from Government’s £2bn annual Local Growth Fund (LGF), the fifth largest Growth Deal that any City Region has made with Government.
The funds will produce more than 28,000 jobs and training for 40,000 people, £46m confirmed for 2015/16.
Humber LEP has received £29m for 2015/2016, Leeds City Region LEP, £73m and York and North Yorkshire LEP, £34m.
The new funding will enable the City Region’s leaders to create a £130m Skills Bank, providing training for 40,000 people in the Sheffield City Region, including between 5,000 and 7,500 apprentices.
James Newman, chairman of Sheffield City Region LEP, said: “Sheffield City Region is getting a bigger share of the new funds than we might have expected and is clearly punching its weight when it comes to newly devolved powers and funds from Government.
’’We have secured the fifth largest amount of any LEP area and we are one of a very small handful of LEPs being given significant freedoms by Government as to how we spend our funding.’
“Our Growth Deal is the first step on a journey to enable the Sheffield City Region to take control of its own economic destiny.
“This is a strong start and, although we have not got everything we wanted, we have done well and we look forward to working with Government to increase their trust in our LEP so we will be able to take even more of our own funding and strategic economic decisions in the future.”
Dave Dalton, CEO of British Glass and The Glass Academy, said: “This is fantastic news for the city of Sheffield and for us as the trade association representing the UK glass industry.
“We are delighted to hear government is investing in skills and training projects, business investment programmes and the infrastructure needed boost the local economy, increase jobs and put our city firmly on the map.
“The glass industry is rooted in the work of a Sheffield University department 100 years ago so it’s fitting that the creation of the British Glass Academy world class centre of excellence as the hub of glass training in the UK will be based in Sheffield.
“By investing in the skills base, up-skilling the workforce and promoting research and development, the government is supporting the resurgence of the UK glass industry, recognising its heritage as well as its importance for the future success of manufacturing in the UK.”
The Prime Minister said that Growth Deals are a crucial part of the long-term plan to secure Britain’s future. He said:
“For too long our economy has been too London-focused and too centralized.”
” Growth Deals will help change all that. They are about firing up our great cities, towns and counties so they can become powerhouses.
“By trusting local people, backing business and investing in infrastructure, skills and housing, we can create thousands of new jobs.
“And that means more economic security, peace of mind and a brighter future for hardworking people across the country.”
The Deputy Prime Minister added: “We are ending a culture of Whitehall knows best.
“Decisions over spending on infrastructure, business support and housing are being made at a truly local level.
“It will help end our over-reliance on the banks and the City of London, and generate growth, jobs, and ambition in towns and cities all across England.
“Growth Deals will create thousands of jobs, provide incredible new training opportunities for young people, build thousands of new homes and improve transport links across the country for people and their families; building a stronger economy and a fairer society.
“We’re placing the power and money in the hands of the people who know how to spend it best, making a real difference to local communities.”