ABOUT 6,000 long-term jobs are to be created in the Humber as the Government pumps nearly £104m into the region's economy.
The cash, combined with £98.5m from partner agencies in the region and £165.1m from businesses, will kick start a host of projects aimed at making East Yorkshire an industrial powerhouse.
It will support a massive flood defence programme, thousands of new and refurbished homes across Hull and a rail electrification programme to connect the city with others in the north.
Deputy Prime Minister Nick Clegg hailed the announcement as "a really important day for the people of Hull".
He said it would give city leaders "freedom and resources to create jobs, more help to meet housing needs and further support to projects essential to Hull's national competitiveness".
Civic leaders have hailed the investment as a vote of confidence in East Yorkshire and said the cash would help it become a global green energy hub.
Lord Haskins, chair of the Humber Local Enterprise Partnership (LEP), which secured the grant in a competitive bidding process, said: "This investment will enable us to put in place more of the critical infrastructure, including important flood defences, to maximise the potential of the Humber estuary and help attract new investment and jobs to the area.
"Today's announcement also means we can continue our successful Growing the Humber capital grant programme for small and medium sized businesses, can support ambitious housing programmes in Hull and North Lincolnshire, and can establish the Humber as a major UK centre for offshore wind training.
"There is a renewed confidence in this area both locally and nationally and I welcome the continued support from Government for our growth plans."
The money includes £48m to be spent on flood defences, £4m for a new footbridge over Castle Street in Hull and £7.5m for rail electrification between the city and Selby.
A further £10m will be spent on building 1,500 homes and refurbishing 4,500 in Hull, while £1m is being given to Goole College for an engineering and renewable energy workshop.
The LEP's Growing the Humber Fund, which gives cash to expanding businesses so they can generate jobs, has got a £4m boost.
Although he was delighted by the news, Hull and Humber Chamber of Commerce chief executive Ian Kelly sounded a note of caution.
He warned the Government must now deliver on its promise to revitalise the region.
Dr Kelly said: "I'm delighted to see this spending in the Humber, especially on the flood defences which are very important.
"The Humber is the second most vulnerable city in the country for flooding after London.
"As ever with Government spending, we will be keen to see hard cash as and when it arrives, though – particularly in this pre-election period."
City and county bosses said the investment was extremely positive.
Hull City Council leader Steve Brady believes the changes, which include some policy commitments, are evidence of the Humber's growing freedom to act independently of London.
He said : "I am delighted projects of such importance to Hull and the Humber have received funding.
"We are at the start of a new era in terms of relations between central and local government regarding how economic development is funded and sustained.
"I look forward, with my Humber colleagues and partners, to the further development of economic devolution."
The money is coming from the £2bn Local Growth Fund pot, which was bid for by LEPs up and down the country.
The Mail understands the Humber secured about 20 per cent more money than it would have received if it were distributed evenly.
Alongside the 6,000 new jobs, which will all last for three years or more, hundreds more short-term roles are expected to come from building work.
Another 3,000 are being safeguarded, mainly because their employers will be protected from flooding.
East Riding Council leader Stephen Parnaby said: "I welcome the Government's announcement regarding Growth Deal funding for the East Riding and the wider Humber region, which will really help this area build on the momentum already achieved in terms of economic regeneration.
"Strategic investment, in things like infrastructure, across the region are vitally important in enabling the Humber to realise its ambition of becoming the UK's Energy Estuary and also in helping the local economy of the region to flourish and prosper."
