The prospect of a county devolution deal for East Yorkshire has been welcomed by leaders of the two local authorities, with the potential to unlock multi-million-pound strategic investments flagged.
It was revealed as one of nine new areas as part of the Levelling Up White Paper publication.
And a metro mayor system like those led by Andy Burnham in Greater Manchester and Ben Houchen in Teesside has been ruled out.
Read more: Private sector-led partnership to push 'Opportunity Humber' - Levelling Up
Instead leaders of Hull City and East Riding councils would alternate at the helm, should agreement be reached between them and Westminster.
It follows the loss of pan-Humber hopes when South Bank authorities opted to join Greater Lincolnshire when single local enterprise partnership membership was required.
This would succeed the Hull and East Yorkshire LEP.
Cllr Daren Hale, leader of Hull City Council, said: “We are pleased that the government has today committed to working with Hull and the East Riding to start negotiations for a ‘County Deal’ for our area. We have been pressing for local devolution for a number of years and our latest proposals were submitted to government last September, laying out a compelling case for devolution to Hull and East Yorkshire.
“We want to work with government to focus on our economic growth opportunities and shared priorities. Our commitment to formally work together brings with it the benefits of a larger geographic and more diverse area and our proposals are very ambitious, so that we could punch above our weight as one of the smaller devolved regions.
“Our proposal is not for a Mayoral deal, because our area is too small, but for a strong combined authority chaired by one of the council leaders on a rotating basis.
“Focusing on the key themes of connectivity, productivity, inclusivity and sustainability, we now look forward to progressing our discussions with government over the coming months.”
Welcoming the invitation to negotiate, Cllr Jonathan Owen, leader of East Riding of Yorkshire Council, said: “This could enable us to realise significant benefits for our residents, our businesses and our wider economy.
“Key themes and priorities have been identified to enable growth opportunities and benefits to a larger geographic area. We look forward to working alongside the government and our neighbouring authority to support future investment opportunities in East Yorkshire."
In March 2020, both councils confirmed their intentions to work closely together to progress a strong and ambitious case for a regional devolution deal between the two authorities.
The councils identified four key priorities in their business case:
Create an integrated low carbon transport network and ensure the continued success of our ports.
Increase productivity by providing our workforce with the skills needed for the future, as well as supporting innovation and competitiveness.
Promote inclusivity which creates economic opportunities for everyone, including tackling health inequalities and the persistent cycle of poverty and benefit dependency.
Deliver a sustainable future through clean energy generation, sustainable development, adaptation and resilience.
It has long been acknowledged that the two economies are inextricably linked. Many live in one and work in another, with ports and industrial development land overlapping.
Hull has the strong identity thanks to work on City of Culture, a factor picked up by opposition leader Sir Keir Starmer to Grimsby last week, while East Riding offers more development potential.
The city has also gained a seat of sorts on the Levelling Up Advisory Council, with Reckitt chief executive Laxman Narasimhan appointed. Iti s described as bringing “a diverse, independent and expert group of voices into the policymaking process”.
The Net Zero agenda is also interwoven with levelling up - with offshore wind acceleration and the deployment of hydrogen and carbon capture in the Humber highlighted.
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