CHEERS and shouts of "thank-you" echoed around the Council House last night after plans to demolish part of the former Hippodrome Theatre were thrown out.

Every member of Derby City Council's planning control committee spoke out against a proposal to demolish the building, which dates from 1914, and replace it with a multi-storey car park.

The decision was welcomed by campaigners, who want to see the restoration of the derelict theatre, which has partly collapsed.

Councillor Alan Grimadell said: "It's a tragedy that this happened to this great old theatre. It should never have become a derelict shell. It's of great historical interest."

Owner Christopher Anthony applied 18 months ago to partly demolish the Grade II listed building and build the car park. But council officers said he had not done enough to look at alternative uses.

The officer's report, supported by English Heritage and the Theatres Trust, said: "There is no clear and convincing justification for the proposals."

As each of the councillors voiced their support for refusing planning permission, they were greeted by applause from the public gallery, where a sign urging them to save the Hippodrome had been displayed.

"We should support our creative industries in this city," urged Councillor Baggy Shanker.

His views were echoed by Councillor Finbar Richards, who said: "We could not make claims to be a cultural city if we let this go ahead."

Mr Anthony claimed the property, in Green Lane, was worth just £25,000 in its current state. But he said it could be sold for £500,000 if planning permission for the car park was approved.

He was represented at last night's hearing by Lindsay Cowell, who said it was a "realistic and viable scheme that would bring numerous benefits to the area".

But his claims were rejected by councillors, who also reacted angrily to a "veiled threat" about the possibility of an appeal.

Councillor Philip Hickson said: "Coming to this committee with veiled threats about what may or may not happen if we should not decide in their favour is unhelpful."

Derby Civic Society chairman David Ling spoke at the meeting against the plans.

He said: "We must not allow any other part of our city's heritage to be lost to us."

Mr Anthony says the building, which shut as a bingo hall in 2006, is in a "critical condition" and is in danger of "catastrophic collapse".

But a survey this week by English Heritage said there was no immediate threat of collapse.