The government called off its search for a site in the Leeds City Region after all four locations investigated – all in Selby district – were deemed to be unsuitable.

Eggborough ward councillor John McCartney, who led the fight against the Willow Green development in Eggborough with his wife and fellow ward councillor Mary, said: "The villages of Kellington, Eggborough and
Beal have experienced a collective sigh of relief.

"It has been a delight to watch residents' faces blossom into huge grins as we've informed them the Willow Green eco-town proposal is now dead and buried."

Plans to create a green scheme at the former Gascoigne Wood mine near Sherburn were rejected by Leeds City Region councillors in June.

But campaigners feared a fresh consultation on the site could still be launched, while the private sector Willow Green bid in Eggborough also remained on the table.

Tory parliamentary candidate for the Selby and Ainsty seat Nigel Adams said: "I'm absolutely delighted we're not going to be faced with the prospect of one of Mr Brown's new towns in our district."

Selby District Council leader Coun Mark Crane also welcomed the news, saying the announcement was a testament to the authority's successful partnership work with the Leeds City Region group.

He added: "All along, we've been adamant a large-scale development in this area would not, in fact, be eco-friendly. We said it would be much better to incorporate such eco-development into areas we've already identified as being the right places for growth to meet the needs of people living, and working in the Leeds City Region area."

Selby MP John Grogan, who was one of the scheme's few supporters, said: "When the Leeds City Region voted against the eco-town proposals earlier this year, I argued with ministers the only viable site in Yorkshire for an eco-town was now Rossington.

"I was a big believer in the concept, but I'm also a believer in local democracy, and I'm pleased ministers came to the same conclusion and will now explore the possibility of eco-districts in the Leeds City Region, including York.

"The acute shortage of affordable housing in Selby district remains and will still have to be addressed."