If the measure to extend parking after 8pm was introduced, Liverpool would become the only city in the north to charge for on-street car parking after 6.30pm.

Last night, the chairman of the select committee, Lib Dem Cllr Eddie Clein, who is opposed to extending parking hours said: "We had to approve the budget as it had been set in January.

"But the Lib Dem group has agreed not to implement the change until the scrutiny panel has reported in June."

He said the inquiry would be wide-ranging and would look at all aspects of car parking in the city.

The compromise was reached during a private Lib Dem meeting on Monday night.

The Daily Post understands former Lord Mayor Cllr Paul Clark, a close ally of council leader Warren Bradley, was one of the key movers in opposing the idea.

The group agreed to allow the scrutiny panel to investigate the issue and advise overturning the proposal.

The issue will ultimately have to return to the city’s executive board before a final decision can be made.

The compromise meant a Labour motion to amend the Lib Dem budget and remove the parking proposal was defeated.

Last night, Frank McKenna, chairman of lobby group Downtown Liverpool in Business, said: "I am delighted, but not surprised."

"I hope they will consider free weekend parking."