On Wednesday afternoon, councillors were due to discuss plans which would have seen a single retailer – possibly Asco – take over the market hall.

But after a huge public outcry – including a petition signed by around 12,000 people and a Facebook group formed with 4,500 members – council leader Stuart Langhorn was due to make a last-minute recommendation that the decision be deferred back to cabinet. And that a working party be set up to look at all options for the building, including keeping the market on one level with a single retailer below.

Earlier this week, confidential information was leaked which showed the council was prepared to spend £1.5million on tying up a deal with Asco, a mini-supermarket chain.

The deal involved spending:
* £500,000 on reconfiguring the building to build an interior more suited to a single retailer
* £400,000 to Asco as a gift for moving to the market
* Offering Asco free rent for one year, at around £400,000
* Giving traders £200,000 in compensation.

After campaign group It's Our City revealed the information, they were issued with threats of an injunction by city council solicitors for circulating "commercially sensitive and confidential information".

The council refused to confirm the figures to the Guardian for the same reason.

Conservative councillor Malcolm Thomas has resigned from the cabinet.

Market traders were joined by around 100 supporters on a march from Lancaster to Morecambe for Wednesday's meeting, where councillors were originally due to discuss a Green Party amendment asking the council to work alongside market traders towards a solution involving existing traders being housed on the building's top floor, with the ground floor let to a single trader.

Coun Barry said: "The council has been looking for a single trader for the whole market for two years now and has failed to find one except for the current candidate, Asco, who I and many others fear would be too much of a financial risk." A U-turn by Labour councillors meant they also supported the amendment, having previously been among cabinet members to vote for the closure.

Coun Eileen Blamire said: "We believe that the current proposals before the council are unacceptable because of the huge costs and risks involved." Speaking at the meeting, market tenants' association member Dennis Buczynski said: "We accept that the current situation cannot continue. However, we strongly believe there is an alternative solution to this" Dave Laney, Asco managing director, said: "We have been made aware of the feelings of the market traders in Lancaster. The issue is between the council and market tra-ders and it is not Asco's role to get involved."