Eight new Regional Development Agencies - covering the whole of England - are being put in place.

They will be responsible for training initiatives, regeneration projects and attracting inward investment.

Deputy Prime Minister John Prescott said: "By bringing together economic, social and environmental issues, RDAs will play a vital role in planning for sustainable economic growth in their regions, increasing prosperity, generating wealth and improving people's quality of life."

John Prescott: Wants the RDAs to boost prosperity and wealth creation

The RDAs will also draw up "a regional economic strategy" and advise the government on local needs.

Their boards will include business leaders, trade unionists and local politicians.

Chancellor Gordon Brown said: "To compete in the global economy we need strong regional economic performance to lay the foundations for sustainable growth."

Ministers hope that the RDAs will bring decisions closer to local people.

The plans have received the backing of both the trade unions and local government bodies.

TUC general secretary John Monks said: "With a leading trade unionist on every regional board, we are confident the new Regional Development Agencies will provide a real basis for partnership."

Local Government Association chairman Sir Jeremy Beecham said: "The RDAs should prove a key player in urban and rural regeneration and we want them to show the regions they serve that they can make a real difference."