The Chancellor will unveil a Transforming Cities Fund designed to support economic growth in major population centres outside London.
The initiative is being launched as part of the Government’s effort to ensure the benefits of Brexit are spread to regions across the country.
Metropolitan authorities throughout England will be invited to bid for the cash to invest in improving buses, trams, metro systems, cycle lanes and other transport links.
A total of £250million from the fund has already been earmarked for improving transport in the West Midlands.
Whitehall officials say the Transforming Cities Fund will address weaknesses in city transport systems in order to raise productivity and spread prosperity.
It follows concerns that travel links between city centres and surround suburbs are inadequate in many parts of the country.
The cash is on offer to support projects which will improve connectivity, reduce congestion and introduce new mobility services and technology.
Transport Secretary Chris Grayling said last night: “Investment in transport is crucial to a strong and resilient economy.
“The Transforming Cities Fund will drive productivity and growth in cities where this is most needed, connecting communities and making it quicker and easier for people to get around.
“We have already seen the impact of better integrated transport links for both passengers and the local economy in cities like Nottingham and Manchester.
“This new fund will enable more English cities to reap these benefits, helping to deliver the opportunities and ambition of the Industrial Strategy across the country, as well as driving forward the Northern Powerhouse and Midlands Engine.”