YORK'S biggest brownfield site has been given "Enterprise Zone" status, in what city leaders are calling a "game-changing" announcement by the Government.

Chancellor George Osborne set out his Autumn Statement today and named York Central - or the Teardrop site - as one of the 26 new zones nationwide.

City officials have welcomed it as a significant milestone in the decades-long push to redevelop the site - which could deliver a major jobs and homes boost for the city.

Cllr Keith Aspden, the deputy leader of City of York Council said: "This is a game-changing development for York Central and the wider local economy. In many ways York has a thriving economy, but its’ potential is held back by the lack of quality office space in the city centre.

"For many growing businesses in the city and beyond, York Central would be an exceptional location with the rail links intrinsic to the site and ease of connectivity to cities such as London, Leeds, Manchester, Newcastle, Edinburgh and other cities in the UK that this provides."

In total, city officials say the Enterprise Zone status could unlock as much as £100 million in investment.

It will give new businesses on the land behind York station rates relief for their first five years; and means that City of York Council can retain half of all the business rates collected on the site - rather than sending the money back to central Government - which in turn helps the council get more funding to pay for crucial infrastructure.

The Enterprise Zone bid was first made in September this year - by the council and the York, North Yorkshire and East Riding Local Enterprise Partnership (LEP).

Flashback: Plea for York Central to become a £100 million Enterprise Zone

LEP chairman Barry Dodd welcomed yesterday's news for the wider region saying the site "is key to driving growth in the city and beyond."

The development could create 7,000 jobs, and bring in £1.1 billion to the region, as well as opening up land for much-needed new housing, officials have said.

Council leader Chris Steward added: "For decades, York Central has been the big opportunity for the city to realise its full potential as a high-value economic hub and address the most significant problem in York’s economy – that wage levels do not match the level of skills in the city."

Much of the land on York Central is owned by Network Rail, who supported the bid, and their Route Managing Director Mark Tarry, welcomed the boost to their "long-held aspiration" for the site.

Both the city's MPs have called for York Central to be given Enterprise Zone status, and last October the then council leader James Alexander signed a Memorandum of Agreement with Network Rail to work together on development of the 35 acre site.

On Monday councillors on a Local Plan committee are due to discuss plans to put anything between 1000 and 2500 homes on the site, with varying amounts of commercial development beside it.