Chancellor of the Exchequer George Osborne has hailed the Sheffield Region as "the manufacturing cradle of the future," during a speech at The University of Sheffield Advanced Manufacturing Research Centre with Boeing.

Mr Osborne was at the AMRC to sign an historic accord that will see increase power and funding devolved from Westminster to the Sheffield City Region.

He told guests, including councillors from the region's local authorities and the Local Enterprise Partnership that the AMRC symbolised the economic future of the region.

The Sheffield Region was "the manufacturing cradle of the world," said Mr Osborne, adding: "What we are seeing here is the manufacturing cradle of the future."

The Chancellor went on to meet apprentices at the AMRC's pioneering Training Centre and hold talks with senior AMRC staff, led by executive dean, Prof Keith Ridgway, CBE.

Prof Ridgway said: "We are honoured that the Chancellor and his Treasury team chose the AMRC, at the heart of the Region's embryonic Advanced Manufacturing Innovation District, as the place to sign this historic accord.

"The AMRC has been the site for a number of ground breaking developments which have made a huge difference to British manufacturers' performance, competitiveness and their ability to maintain manufacturing capability in the UK.

"Now, it has been the location for a ground breaking deal that could not only give a tremendous economic boost to this region, but could also confirm its future as the place where Britain's manufacturing future is forged.

"A major part of the deal involves the creation of new Advanced Manufacturing Innovation District (AMID), centred around the AMP and our new Factory 2050 site on Sheffield Business Park, which will encourage more inward investment for the region."

Devolution plans include the creation of an elected mayor to lead the City Region and an additional £30 million a year of Government money, to boost local growth and invest in local manufacturing and innovation.