Osborne tells South Yorkshire: "You've got the power!"

The proposals would bring more local control over spending on affordable housing, public transport, skills training and business support.

The chancellor visited Rotherham’s Advanced Manufacturing Research Centre on Friday to meet with civic leaders and announce the way forward.

Mr Osborne said the deal — the second of its kind after Manchester — offered the opportunity to reshape local government.

He added: “For local people, it will mean the decisions that affect them being taken locally.

“Manchester is not a one-off. In becoming the second great northern city to sign up to managing its own affairs with this ambitious agreement, Sheffield City Region is playing a vital part in helping to build the Northern Powerhouse.”

The proposals — worth £1 billion over 30 years — include commitments to develop the Advanced Manufacturing Park and Doncaster’s High Speed Rail College.

Elections for a regional mayor to hold accountability for the new powers could take place as early as May 2017.

For reaction to the Chancellor’s big announcement, see Friday’s Advertiser.