CITY leaders said Southampton is "ready to bounce back" as multi-million pound plans to transform the city centre have been approved.

The Leisure World site is to be given a new lease of life as existing buildings will be demolished to make way for 650 homes, two 150-room hotels, 80 serviced hotel apartments, new restaurants, offices, a cinema and a casino.

It comes as on Tuesday night councillors backed the £250m scheme which is expected to create 1,000 jobs.

Plans to build 519 homes at the site of the former Bargate Shopping Centre were also approved on Tuesday.

As part of the proposals, the site will also see more green spaces, 2,515 square meters of retail space and a walkway from The Bargate to Queensway to showcase the city’s historic walls, which were previously hidden from view by the now-demolished shopping centre.

The business community in the city described the decisions as "momentous".

Cllr Christopher Hammond, leader of Southampton City Council, said the investment shows confidence in the city.

He said: "After one of the most challenging years we’ve ever faced as a city, Southampton is ready to bounce back. These two new developments represent a combined investment of around £350m and create over 1,000 jobs during construction. Despite the difficulties we face, there is confidence in Southampton’s future and our city’s potential. The Covid-19 pandemic is not over yet, and we have some significant challenges to overcome. But this week, we’ve taken a big step forwards on our plan towards building a greener, fairer and healthier city.”

Last week developers at Tellon Capital - which tabled the plans for the Bargate Quarter - said work at the Bargate site could start start between summer and autumn this year and it would take three to four years to complete.

Meanwhile, work at the Leisure World site is expected to start next year and will be done in phases.

It comes as detailed planning applications will have to be discussed by councillors in the future to determine the details of each phase of the scheme.

Southampton MPs also welcomed the news.

Talking about the Leisure World scheme Royston Smith, MP for Southampton Itchen, said: "As we start to emerge from this dreadful pandemic statement developments such as this show a confidence, not just in Southampton, but in the future economic recovery of the country."

He also said to be "relieved" that plans for the Bargate Quarter were approved as he said it will help provide much-needed homes.

But Southampton Test MP Alan Whitehead said: "Whilst it's great to see new development that will improve the current look and feel of both sites it's a real shame that neither have any affordable housing. I hope this will be looked at by the government in the future so that affordable housing can be a feature of future city centre locations."

As reported, developers of the Bargate Quarter said it would not be viable to provide affordable homes as part of the project.

Cllr Dan Fitzhenry, leader of the opposition at the city council, said the projects show that Southampton is "a great city of opportunity."

Giles Semper, executive director at GO!Southampton - the Business Improvement District (BID) (BID)- said to be delighted with the news.

He said: "The Bargate scheme fills a void that has blighted the city over the last few years. It is mainly residential, but the example of cities like Manchester and Liverpool shows us how important it is to bring residents right to the heart of the city." He said the Leisure World scheme should "integrate fully" with the masterplan for the Mayflower Quarter, which is yet to be published.

On Tuesday night residents raised a number of concerns over the impact the Leisure World development would have on traffic, noise, pollution and over-development. Some concerns were also raised over the proposed walkway at the Bargate Quarter. After the meeting Cllr Lisa Mitchell, chair of the Planning and Rights of Way Panel, stressed that there will be detailed applications for each phase of the Leisure World project. She added: "On balance I was happy to vote for both schemes to receive planning permission."