Plans for a proposed 500-home village in York are set to resume after a Government minister backtracked on his claim the land is in the green belt.

In a report to members of City of York Council's executive committee, members are asked to approve the re-engagement of the community consultation and master planning process for the proposed Metcalfe Lane development, at Osbaldwick.

The procedure was halted in August last year following remarks made by housing and planning minister Nick Raynsford in a letter to Ryedale MP John Greenway. The letter stated Mr Raynsford's view that the site was designated as green belt, and should therefore be included in the council's green belt review.

The report said: "Council officers believed the housing and planning minister's statement to be incorrect and, following legal advice, maintained their position that designation of the site should be left to the local authority.

"Following representations from the city council, Nick Raynsford wrote back to reconsider his previous advice.

"Essentially, the minister agreed the issues are less clear than he had originally set out, and that it will be for the City of York Council to come to a view on the status of the land, and also to determine any application for the site.

"With the removal of the minister's objection, the council is now in a position to renew the partnership with the Joseph Rowntree Foundation, and to re-engage the master planning process with a view to receiving planning applications for the development of the site in line with the agreed timetable."

The news will disappoint some residents of Osbaldwick who are fighting the application with the help of Mr Greenway. The executive meeting takes place on Friday at The Guildhall, York.

Updated: 12:17 Monday, April 30, 2001