WORK on the first phase of a stadium and superstore development on the edge of York is set to start this autumn – if no last-ditch attempt is made to block it.

The Government confirmed this week it will not call in proposals for a new 6,000-seat home for York City FC and York City Knights, alongside John Lewis and Marks & Spencer stores, at Monks Cross after City of York Council approved the project last month.

The ruling means there will not be a public inquiry into the scheme, but its opponents could still seek a judicial review, where a judge would examine the council’s decision through court proceedings.

Such a review must be requested by August 31, and developer Oakgate (Monks Cross) Ltd said it hoped to start work on the site soon afterwards if no application is lodged.

The £90 million retail complex would be built first, with the stadium earmarked for completion for the 2014/15 sporting season.

Oakgate said the retail development will create 1,000 new jobs and boost York’s economy by millions of pounds a year, but opponents claim city-centre businesses will be forced to close.

Peter Brown, director of York Civic Trust, one of the scheme’s critics, said it would discuss the Government’s decision at a board meeting on Monday.

An Oakgate spokesman said: “Although we cannot start construction work immediately, we are now able to work through the detail of the proposals with the local authority.

“Subject to all agreements being in place, work on the infrastructure – such as highways and utilities – and construction of the retail units could start by early autumn. Construction of the stadium and community buildings will be led by the local authority.”

Meanwhile, LaSalle UK Ventures Fund, which is drawing up proposals for a £200 million redevelopment of the Castle Piccadilly site, is planning talks with the council about whether there are “viable options” for its scheme.

Graeme Chalk, of LaSalle’s development manager, Centros, said: “It does at least remove any uncertainty about Monks Cross, but that development is destined to have a major impact on trade in the city centre.

“That loss of trade, likely to be more than £50 million a year, severely compromises our ability to deliver a viable, comprehensive, high-quality and much-needed development of the Castle Piccadilly site.”