The council's bid was praised as a flagship scheme

The city is one of only 10 in England to get a share of a �126m package under the Local Enterprise Growth Initiative.

Local authorities were invited by the government to submit proposals setting out how funding would be used to transform their most deprived areas.

Bradford Council's bid was praised as "a flagship for the way in which business engagement should be done".

Each bidder was given �120,000 to see how they could foster enterprise in their area.

'Clear vision'

Bradford undertook a pilot project called Enterprise Island. More than 140 budding entrepreneurs were seen by a panel and their ideas assessed with the top 14 going on to develop their business idea.

Patrick Wiggins, Bradford Council's director of regeneration and housing, said: "Enterprise Island helped identify the potential for new businesses in the district.

"This money will provide the funding to help generate up to 400 new businesses per year, which is what Bradford needs to have a vibrant mixed economy."

In giving the go-ahead to Bradford's bid, the Office of the Deputy Prime Minister said the city's approach had shown "excellent private sector involvement and funding, a clear vision on management and was confident in its diverse ethnic involvement".

The city will receive �21.4m over the next three years - the largest amount awarded to any of the 10 winning bids.