Scarborough and Whitby have been named among the first set of towns that are going to benefit from extra funding.
Prime Minister Boris Johnson announced at the end of July the launch of the new £3.6 billion Towns Fund to support an initial 100 town deals across England, 42 of which are part of the Northern Powerhouse.
The shortlisted towns, the government says, include "places with proud industrial and economic heritage which have not benefited from economic growth in the same way as more prosperous areas".
Communities, businesses and local leaders in each town will now have the chance to draw up plans with the potential to transform their town’s economic growth prospects, with a focus on improved transport, broadband connectivity, skills and culture.
Announcing the fund, Local Government Secretary Robert Jenrick said: “Ensuring that prosperity and opportunities are available to everyone in this country, not just those in London or our biggest cities, is at the heart of the mission of this government.
“We want to level-up our great towns, raising living standards and ensuring they can thrive with transformative investment in transport, technology, skills and culture.
“I will now work with local people from the 100 communities announced today to agree proposals to invest up to £25m in each place.
"I hope these deals will provide the investment and the impetus for long-term renewal ensuring each town can look to the future with a new optimism.”
Northern Powerhouse and Local Growth Minister Jake Berry said the Government was reaffirming its commitment to the people of the North.
“The best answers for local people will come from local people, that’s why we have listened to people living in these towns and will support them with a mega £3.6bn fund to drive jobs and economic growth," he said.
“Five years on from the launch of the Northern Powerhouse, we are reaffirming our commitment to the people of the North so they have the support they need to be at the leading edge of a confident, global Britain when we leave the EU on October 31.”
The Government will soon publish a prospectus to guide towns through the process and set eligibility criteria for funding.
Decisions on funding any proposals would be made in due course, it said.