The new regional authority which is armed with a £1.3billion investment fund has been formally established.

The Hampshire and the Solent Combined County Authority (HSCCA) is now a reality following parliamentary approval.

HSCCA will have devolved powers from Westminster to focus on priority areas, including transport, housing, skills, investment and economic growth.

At its inaugural meeting, expected to be held in July, the authority will establish itself as an operating organisation, adopting its constitution and setting out its governance arrangements, decision-making process and how it will work with partners.

Hampshire County Council leader Nick Adams-King said: “The formal creation of the new authority marks an important and long-awaited step forward for our region.

“Our work together now begins in earnest, giving us the opportunity to make decisions that really reflect what people need, and invest in the long-term prosperity and wellbeing of communities across our area.”

Southampton City Council leader Sarah Bogle said: “This is a major step forward for our regional economy and Southampton as a key driver of growth.

“We have great potential and by working together we can unlock new investment, support local businesses to grow, and ensure our residents have access to the skills, opportunities and housing they need to thrive.”

Under the devolution deal, the authority will receive investment funding of £44.6million a year for 30 years.

However, for the first two years before a regional mayor is elected in 2028, the allocation will be £17.84million.

Councils will continue to run day-to-day services such as social care, waste management and road maintenance.

Jonathan Bacon, leader of the Isle of Wight Council, said the establishment of the new authority was an important development for the region.

He said: “It provides a framework for councils and partners to work more closely together on shared priorities such as transport, skills and economic development.

“I aim to ensure that issues relating to the Island’s connectivity to the mainland are a particular focus given the importance of that issue to the vast majority of residents.”

Portsmouth City Council leader Steve Pitt said: “Now the new combined county authority is up and running we can begin to make local decisions for our region that will bring real benefit and opportunities to communities and businesses right across Hampshire and the Solent.

“We’re ready to work together to ensure devolution is a success and delivers for residents and our local economy.”

The authority already has a chief executive in place, with Dr Ruth Adams appointed earlier this year.

She has been working on a part-time basis prior to HSCCA’s establishment.

Dr Adams, who was previously deputy chief executive of South Yorkshire Mayoral Combined Authority, said: “The creation of the combined county authority gives us a real opportunity to bring regional leaders together, attract investment and accelerate progress on the issues that matter most to local people and businesses.

“We are ambitious about what we can achieve and are now focused on turning that ambition into action.”