The Chancellor backed up the post-election appointment of a minister for the Northern Powerhouse and cities champion Greg Clark as Communities Secretary with a speech in Manchester promising 'a revolution in the way we govern England.'
Osborne will invite other cities in England to join Manchester in bidding for devolved powers. Manchester is due to elect a mayor when it takes on extra powers in housing, planning, transport and policing in two years.
A Cities Devolution Bill will be included in the Queen's Speech later this month, Osborne will add in his speech later.
Osborne is expected to say that running everything from London 'made people feel remote from the decisions that affect their lives' and is 'not good for our prosperity or our democracy.'
Many Northern cities are likely to resist the devolution move as it comes with the requirement that a directly elected mayor be appointed.
Earlier this week, Greg Clark, former minister for cities and an ally of Osborne on the Northern Powerhouse agenda, was made Secretary of State for Communities & Local Government, replacing Eric Pickles, who served in post for the whole of the last parliament, but was better known for trying to protect the shires from green belt erosion.
The new Tory government's reshuffle also saw James Wharton appointed minister for the Northern Powerhouse.
All the rhetoric and powers that come with the city devolution movement will be weighed against the further austerity cuts to local government in the coming years. Councils may find themselves with more responsibilities but less resources.