DEVELOPERS say they will start building a new stadium and two superstores on the edge of York “as soon as possible,” after the Government gave the massive project the green light.

The 6,000-seat stadium for York City FC and York City Knights, as well as the John Lewis and Marks & Spencer stores, can now be built at Monks Cross, after Communities and Local Government Secretary Eric Pickles yesterday ruled that City of York Council’s decision to approve the scheme should stand.

The authority granted permission for the £90 million retail scheme and the stadium last month, but the Government had the power to call the project in for a public inquiry which could have seen it being blocked or delayed.

In a letter to the council’s chief executive Kersten England yesterday, senior Government planning manager Sara Lewis said Mr Pickles felt there was no “sufficient reason” for a call-in and the scheme should be decided at a “local level”. The £19 million stadium is earmarked to be ready for the 2014/15 football and rugby league seasons.

City chairman Jason McGill said he was “absolutely delighted” at the Government’s decision, and said: “With the stadium and the income it will generate, we can prevent the dark days which surrounded the club ten years ago ever happening again.”

Knights chairman John Guildford said: “It’s fantastic this decision has been made and now we can get on and build a stadium benefiting everybody.”

Neil Hunter, who chairs City of York Athletics Club, which will move to York’s Sports Village under the scheme, said the project team had done “a great job despite a lot of criticism”.

Developers Oakgate (Monks Cross) Ltd have said the new stores will create 1,000 jobs and inject millions of pounds into York’s economy. Opponents scheme claimed it would force city-centre businesses to close and lead to job losses.

Richard France, Oakgate’s managing director, said the announcement was “a huge boost for the whole of York”, saying: “We’ll look to start on site as soon as possible and it’s great to see the Government acknowledge the strength of local opinion.”

Council leader James Alexander said: “This is the right decision for the city and sends a strong signal to the marketplace that York is open for business and opportunity.”

The council’s Conservative group asked the Government to call in the scheme, and its leader Coun Ian Gillies said: “I don’t agree with the Secretary of State’s decision, but that is what we have to live with - now it is time to move on.”

Liberal Democrat leader Coun Carol Runciman said the development would “significantly contribute” to York’s economy and create “much-needed jobs”, but Green leader Coun Andy D’Agorne said it would be “bad news for the city” and said York would have to “live with the consequences”.

York Civic Trust director Peter Brown said: “We’re naturally disappointed the Government does not appear to have confidence in its own national planning policy framework.”

Read the letter from the Government here»