IT is the deal that could see £953m of investment pumped into south Hampshire.

Government ministers, council bosses and business leaders were today due to sign the City Deal which could create thousands of jobs in Southampton and Portsmouth.

As reported in the Daily Echo, council chiefs in Southampton teamed up with counterparts from across the region to bid for new powers to boost its economy.

Now that they have been successful in that bid, Deputy Prime Minister Nick Clegg and Minister for Cities Greg Clark were signing off the deal, that could see more than 17,000 jobs created.

One of the key parts of the deal is a £7m Regional Growth Fund grant to make plans for the expansion of Southampton’s Watermark WestQuay a reality.

That grant is expected to unlock £90m of private sector investment in the city.

The Ministry of Defence will also hand over land to Portsmouth City Council which could unlock £831m of private and public sector investment to completely transform the area.

A new £5.8m Solent Jobs Pilot will also be created to help 1,000 very long-term unemployed people back into work, while a £1m Department of Work and Pensions rapid response service will support people recently made redundant.

Other projects include a £3m Marine and Maritime Employer Ownership for Skills programme, a £1.4m Young Persons’ Fund to tackle youth unemployment, and £10m to help small and medium- sized businesses to grow.

It comes after the devastating blow dealt to the local economy by the closure of BAE Systems shipbuilding yard in Portsmouth, announced last week.

Mr Clegg, pictured, said: “The deal will help to create thousands of vital new jobs in the region, and every effort is being made, both in Government and at a local level, to help the local area through a time of uncertainty.”