Last year, Ministers announced “trailblazer” deals for Greater Manchester and the West Midlands, providing them with a single pot of money instead of a series of tightly controlled grants.

It also allows them to retain 100 per cent of the money raised from business rates.

Clive Betts, chair of the Levelling Up, Housing and Communities Select Committee, said local leaders in South Yorkshire, West Yorkshire and Merseyside were not given the same deal despite previously being “given assurances” during discussions with Westminster last year.

Levelling Up Minister Jacob Young has said the Government wants to see whether trailblazer deals provide “value for money” in Greater Manchester and the West Midlands, before they are offered to other areas of the country.

Speaking in Parliament, he also said approving further devolution in South Yorkshire, West Yorkshire and Merseyside, which already have elected mayors, is “something we’re still considering”.

Mr Betts, who is also the Labour MP for Sheffield South East, said: “The Government has finally come clean and admitted that it is no longer their intention to give South Yorkshire, Merseyside, or West Yorkshire the same trailblazer devolution deals it has given other areas.

“Areas like South Yorkshire are being offered devolution minus – it is beyond disappointing. The Government is now openly admitting South Yorkshire is being offered a second-rate devolution deal.

“This is yet another broken promise made by a broken government that has never been serious about properly levelling up this country.

“The single financial settlement was one of the better ideas in the Government’s devolution plans.

“It begs the question as to why it has been given to certain areas, but not others like here in South Yorkshire.”

He added: “Why does the Government believe that people in South Yorkshire deserve less than those in Greater Manchester and the West Midlands?”

There are currently 10 areas with mayoral devolution in England, including West Yorkshire, South Yorkshire, West Midlands, Greater Manchester and the Liverpool City Region.

Metro mayors have powers over planning, policing and development. They can also impose a precept on council tax to fund specific projects and bring some public transport services under public control.

Mayoral devolution is being extended to three new areas – York and North Yorkshire, East Midlands and parts of the North East – this year.

The election for York and North Yorkshire’s first mayor will be held in May and the winner will be handed at least £540m over the next 30 years as part of the devolution deal and be granted powers to invest in transport, housing and education.

Tory candidate Keane Duncan is the front-runner. He will be competing against Labour’s David Skaith, Kevin Foster from the Green Party and independent candidate Keith Tordoff.

Levelling Up Secretary Michael Gove has promised devolution deals and long-term funding settlements for every area of the country that requests one by 2030.

MP claims there were ‘broken promises’ of devolution deals for Yorkshire