Treasury officials have said no decision has been taken on how much public money would be put into the regional growth fund announced in the Budget

The regional growth fund, which will be used to pay for employment-generating projects outside of London, the South-east and eastern regions, will be used in part to fill the hole created by the abolition of the regional development agencies (RDAs).

A Treasury source said a white paper on local leadership expected this summer would spell out whether the regional growth fund would be created from private or public money. He said: “If there’s going to be a private sector-led recovery, then it’s fair to assume the growth fund will also have private involvement.”

Osborne said schemes including Manchester Metrolink, Birmingham New Street station, and the Tyne & Wear metro would continue because of a dedication to rebalancing growth between the North and South.

The Budget confirmed that a Public Bodies Bill would spell the end for RDAs, which spend £1.75bn of public money annually.