£18m of devolution funding for transport, housing and skills programmes to be made available across East Midlands

The funding is being offered to the two counties, plus Nottingham and Derby, as part of early investment to the area, specifically targeting homes with poor energy efficiency ratings – the most poorly insulated – and low-income households.

A total of £9.9 million is the latest funding amount to have been approved in order to help councils to carry out retrofit work on homes to make them more energy efficient.

Coun Ben Bradley, Mansfiield MP and Nottinghamshire Council leader – who is bidding to become the first East Midlands regional mayor – said: “It’s fantastic news that by working together we’ve secured yet another investment. This time new funding will help more homes to be energy efficient and help reduce bills for those who need it the most.

“Working with partners, we have previously led trials to help test and monitor the most effective ways to heat homes and soon more residents across the region will benefit.

“This is just taster of what could be achieved under the devolution deal.”

Devolution would mean a new guaranteed funding stream for the East Midlands region of £38m a year over a 30-year period and cover Derbyshire, Nottinghamshire, Derby and Nottingham, which is home to about 2.2 million people, making it one of the biggest in the country.

The devolution deal includes an extra £16m for new homes on brownfield land and control over a range of budgets like the adult education budget, which could be better tailored to the needs of people in local communities.

A regional mayor would lead a new combined authority, which would include representatives from existing councils, with decision making powers and resources moving from London to the East Midlands.

Now Nottinghamshire, Nottingham, Derbyshire and Derby councils have formally backed the plans, and agreed on a final version of the proposal, it means that new local powers and funding to improve the environment, skills training, transport, housing, and the economy could be in place as soon as next year.