The landmark deal will create a new enterprise zone near the city centre, provide powers to help get young unemployed people into work and give greater control over land for redevelopment and help build 12 new secondary schools.

The people of Liverpool will also now vote for a city mayor later this year.

Liverpool will also set up a joint Mayoral Investment Board to oversee the city’s economic and housing strategy, pooling local assets including those of the Homes and Communities Agency to drive economic growth.

Cities Minister Greg Clark said: “The Government is approving the city deal with Liverpool.

“We said that each of the eight core cities should consider what powers they need to be able to drive growth and build the best future for their local economy.

“I think Liverpool has responded to that challenge with great enthusiasm.”

The council can now go ahead with its Secondary School Investment Plan to fund a dozen new build secondary schools.

These schools will be subject to the normal Academy process which will see Liverpool work with the schools, the private sector and the universities in Liverpool to help them develop specialisms and identify and attract appropriate sponsors.