Ministers have outlined proposals to boost regional economies to the tune of £6 billion.

The funds will go towards developing local businesses and energising infrastructure projects around the UK, according to prime minister David Cameron, who announced the plans today.

The money comes as the first tranche of £12 billion allocated by the coalition government to boosting regional economies.

Business leaders said the money would help “unlock the potential of our towns and cities”, but warned that the investment should not be a “one-off”.

Katja Hall, CBI deputy director-general, said: “Businesses and local authorities have been working hard to develop their plans for growth and it’s great to see that hard work starting to bear fruit in this announcement.

“Giving funding to the people best placed to invest it will help unlock the potential of our towns and cities – but this cannot be a one-off.

“Growing our local economies requires bold thinking, big ideas and a commitment to stay the course. We need to stick with what’s working and see all political parties supporting these projects.”

The government expects Growth Deal money to help upgrade 150 roads, 150 housing developments, 20 rail stations and improve broadband networks across the country.