Yorkshire cities to be given vote on elected mayors

The Tories have secured approval to push ahead with referendums in Leeds, Bradford, Sheffield and Wakefield, despite both parties having to drop key election pledges. Several more have been watered down, including the flagship Tory policy of a two-year council tax freeze being cut to one year.

It could see all mayoral votes taking place on a single Referendum Day as early as next year with the promise of extended powers for a Boris Johnson-style figure over housing, planning, regeneration and maybe even transport.

The coalition agreement marks a declaration of war on Labour's regional tier of government, including promises to "rapidly" scrap housing targets for Yorkshire, reform regional development agency Yorkshire Forward, and consider axing Whitehall's 7m-a-year outpost in the region.

Many responsibilities will be handed back to local councils in what the parties herald as a "radical devolution of power", giving residents the right to veto excessive council tax rises and councillors a say on big pay deals for officials.

Fire Minister Bob Neill also revealed he was "looking closely" at the botched project to impose a single control centre for all four fire services in the region which is costing taxpayers 5,000 a day even though the building in Wakefield is not yet in use.

As well as confirming the areas of agreement unveiled last week, yesterday's 32-page document gave more detail of the Government's plans across 31 policy areas from banking to universities. The Liberal Democrats will be able to abstain on some contentious areas such as nuclear power and tuition fees.

There were also some surprise inclusions, including the pledge of anonymity for defendants in rape cases.

In key areas both parties have made concessions, the Tory council tax pledge – unveiled by George Osborne to acclaim at his party conference in 2008 – now being only a one-year freeze with a promise to "seek" a second year freeze.

Other Tory pledges either dropped or watered down include the introduction of a Sovereignty Bill, trying to repatriate powers from the EU, scrapping the Human Rights Act and Financial Services Authority and repealing the fox-hunting ban.

Amid simmering discontent from his own backbenchers over ground ceded to the Liberal Democrats, Prime Minister David Cameron said it would be "churlish" to focus on the differences and urged his own party to "get used to the new world".

Mr Clegg, MP for Sheffield Hallam, said: "Even if you've read 100 party manifestos, you've never read a document like this one. Compromises have, of course, been made on both sides, but those compromises have strengthened, not weakened, the final result."

The document, Coalition: Our Programme for Government, promises a referendum on elected mayors in the 12 biggest cities.

Key points of agreement

National deficit to be cut "urgently"

Banking levy and crackdown on red tape

Benefit cheats to face clampdown

Schools system opened up to new providers

Scrapping ID cards and introducing Freedom Bill

Referendum on voting reform

High-speed rail network, built in phases

Pensions link to earnings restored