Ms Blears hoped other areas will sign up in the future
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Communities Secretary Hazel Blears has hailed an initiative that has seen seven groups of councils and their partners vow to boost local economies.
The minister said the Multi-Area Agreements would give authorities more freedom from Whitehall.
It is hoped the deals will allow for better working across boundaries.
The areas who signed up are Tees Valley, Greater Manchester, South Yorkshire, Leeds, South Hampshire, Dorset and Tyne and Wear.
Each area will highlight specific projects, including transport, planning and employment, which require cross-boundary co-operation.
Ms Blears said: "Some of the issues that make the biggest difference to local people don't respect local boundaries.
"Whether it's boosting the economy by skilling people and helping them onto their career path, making transport work, or building the right homes in the right places. If they want to make a big difference, councils need to come together.
"Local areas will work shoulder-to-shoulder to boost economic growth."
She said the government were hoping other areas will sign up to the scheme in the future.
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