The new mayor, who will be elected in May 2025, will have powers to invest in transport, skills and housing, with spending of £13.3m a year over three decades.

Local government minister Jacob Young was in East Yorkshire to sign the deal alongside council leaders Mike Ross and Anne Handley.

Hull Council leader Councillor Ross said: “This is a significant moment for the city as the proposed deal has the potential to be a game changer for Hull and the East Riding in terms of jobs, investment and growth. Local people could see real, positive change in their lives.

“We are committed to making sure that people in this area are no longer left behind. That means getting this fair deal agreed which will give our city a brighter future.

“Now we have a deal, it is vitally important people have their final say.”

A statutory public consultation will take place in January.

The deal includes £4.6m of funding to help build new homes on brownfield land and up to £5m of capital funding on the area’s economic growth priorities, including any further expansion of the Siemens Gamesa turbine factory in Hull. It also covers the £2m cost of setting up the mayoral combined authority.

East Riding leader Councillor Handley said she was “thrilled to finally put pen to paper” on the deal. She said: “With a £400m investment fund and new powers in key areas like transport, housing and adult education, this deal offers us a seat at the top table and the opportunity to truly level up our region.”

Starting with a “level 3” deal, the area will have the opportunity to apply for a higher “level 4” deal at a later date.

Historic devolution deal signed as Hull and East Yorkshire look towards to new Mayor in 2025