Wayne Colquhoun, of Liverpool Preservation Trust, said what had been done to the building was a shame.

“It’s a disgrace, there is no other way to describe this.”

Labour Cllr Steve Munby, who represents the Riverside ward, said: “This is the latest stage in a grisly disaster for design and development in Liverpool.

“The vultures have picked over the corpse of a beautiful building and what we are left with is a graveyard of civic pride – a corporate car park.”

Mike Hanlon, managing director of Maghull Developments, said the company had to be realistic about building in a recession.

“In the current economic climate, we are not in a position to proceed, he said.

“As a short-term stop gap, we want to demolish the three-storey building facing Myrtle Street (Josephine Butler House) and a single-storey 1960s building.

“We have reports from English Heritage saying there was no significant interest in the building whatsoever. The stone cladding was taken off the building last year.

“The building cost is approaching £40m and the bank would not support any developer without pre-lets to move in.

“We are happy to hold tight for the time being.”

The company had always expected to have to wait while the university vacated other buildings, farther along Hope Street, which are also part of the overall project.

In Crosby, the company has plans for offices, apartments and new shops.

Marks & Spencer Simply Food, Tesco, Argos and HomeBargains are all said to have shown an interest in the Central Buildings scheme.

Maghull Developments owned almost 70% of Crosby Village, until it sold a large section to Sainsbury’s late last year.

Last night, Mr Hanlon said he did not know when work would start.

“It could be 12 months or three years, we will develop once the market picks up,” he said.