PENDLE council has lost out on £100,000 after the controversial sale of Barnoldswick Town Hall to a pub company was called off.

Councillors decided last night to pull out of the deal with Preston-based Inns & Leisure after a months of arguments over the future of the ex-council offices.

Instead the council-owned Jepp Hill building will be put back on the market for non-leisure uses such as housing or offices, the council's policy committee agreed.

It means the council will lose out on a major cash boost. The pub company had offered £166,000 for the building while turning it into housing is only likely to raise around £50,000.

Councillors were told the authority could legally pull out of the deal because no contracts have been exchanged.

Inns & Leisure has appealed against the council's decision not to grant planning permission for the pub. That appeal is set to be heard on December 21. Mike Warner, of Barnoldswick Town Council, who has led the residents' campaign against the pub plan, said he was pleased with the decision to call off the sale. "My only concern now is that Pendle will not get on with marketing this building before the appeal is heard," he added.

Earlier Mr Warner told the committee the council should make its own decision before the matter was taken out of its hands by the appeal inspector. "The people elected you and not some unknown inspector from another part of the country," he argued.

Councillor David Whipp said: "I hope we can get the building occupied for a good use that will not destroy the quality of life of people living round about."

Councillor Colin Waite raised concerns about the effect the loss of revenue will have on the council's budget. Chief executive Stephen Barnes said the council's sell-off list included extra sites for disposal to balance lost sales although he admitted the cut in cash from the town hall sale will affect the authority's capital programme.

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