The money is to be spent improving broadband coverage in London, Belfast, Edinburgh and Cardiff. A further six cities will be added to the list later.
"It means creating new superfast digital networks for companies across our country. These do not exist today. See what countries like China or Brazil are building, and you'll also see why we risk falling behind the rest of the world," the Chancellor said.
The plan is to create a hub of super-fast cities with broadband speeds of between 80 to 100Mbps (megabits per second) and city-wide high-speed mobile connectivity.