Greater Manchester will become the first English region to get full control of its health spending, as part of transferred powers.
This would mean NHS trusts would be run by the region's councils and health groups.
The plan will come into action from April 2016.
Chancellor George Osborne added, "This is what the NHS wants to see as part of its own future", "And it's also about giving people in Manchester greater control over their own affairs in that city, which is central to our vision of the 'northern powerhouse'- so it's a very exciting development."
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