When the Labour Party won the 1958 local elections and took control of Newcastle, Smith was appointed Chairman of the Housing Committee. He was elected as Leader of the City Council in 1959, and created one of the country's first free-standing Planning Departments and made it the most powerful department in the council. As Leader he instituted a personality-based leadership, creating an 'inner Cabinet' of his own supporters. So influential did Smith become that
Lord Hailsham was sent up to Newcastle by the Conservative cabinet to try to counter him. Smith was enthusiastic about town planning and the arts as means of improving the quality of life. Redevelopment was concentrated in the eastern part of the city centre, which had until then been occupied by 18th and 19th century housing. The streetscape design favoured a strong segregation between traffic and pedestrians. The plans also favoured the preservation of the historic core around
Grey Street. Though it continued under subsequent councils, the development was left substantially incomplete. Smith continued to run his painting business, which employed 250 by 1965. Poulson did not design any buildings in Newcastle, and there is no evidence of corruption during Smith's time as head of Newcastle's council. He attracted criticism from fellow Labour Party members for his extravagant spending, driving a Jaguar with the private plate "DAN 68", educating his children privately and purchasing a
pied-à-terre in
St James's, London. ==Political advancement==