George Osborne keen to see Shropshire join in vision for 'northern powerhouse'

The Chancellor, who used a day-long tour of the region yesterday to announce an extension of Birmingham's enterprise zone and confirm plans for a range of transport projects, urged councils in the Midlands to be part of his "revolution" in local government.

Ministers have already agreed a devolution plan with council leaders in Greater Manchester as the centrepiece of Mr Osborne's much-vaunted "northern powerhouse".

Mr Osborne used a speech in Derby to spell out his vision of a "Midlands engine", claiming there was a "real buzz" about the region after years of neglect.

Among the areas that could be affected are Shropshire, Telford, Herefordshire, Nottinghamshire, Derbyshire, Leicestershire, Rutland, Newcastle-under-Lyme, Halesowen, Dudley, Loughborough and Lincolnshire.

He said: "For too long the Midlands was overlooked by successive governments in London, and I'm here to tell you: not any more. We're going to attract the jobs, make the investments, bring the prosperity here.

"The Midlands should be Britain's engine for growth and this Government has a plan to back you – the people of the Midlands – at every stage of your life."

The Chancellor said £5.2 billion had already been committed to transport projects, upgrading key roads including the M1 and M6 as well as improving rail infrastructure, "so that the Midlands can act as a transport hub for the entire country".

The HS2 high-speed rail line from London to Birmingham will bring "massive benefits", Mr Osborne said. "It is the great engineering project of our age and it will transform the economic geography of our country."

Mr Osborne vowed to work with local council leaders across political divides on shifting power from Westminster