Lights to stay on at Electric Ballroom

For decades it has played host to some of the world's most famous bands - from the Sex Pistols to Oasis and rap stars OutKast.

Now, after a four-year campaign and the intervention of stars such as Dame Judi Dench, Bob Geldof and Nick Cave, Camden's Electric Ballroom has been rescued from closure.

Deputy Prime Minister John Prescott has rejected London Underground's plans for the redevelopment of Camden Town Tube station - which would seen the landmark music venue and a large part of Camden Market demolished to make way for shops and offices.

Mr Prescott today agreed with the findings of a five-month public inquiry last year, which concluded that the scheme should be refused. He said the plans would have a " devastating impact" on the character and appearance of the area, would be "detrimental to the viability and vitality of Camden Town" and would have "unfortunate far-reaching social and economic consequences".

Campaigners expressed delight today. Cave said: "The Electric Ballroom is part of the lifeblood of Camden Town, and long may it remain so." Dame Judi added: "Thank goodness common sense has prevailed."

Geldof was one of many who wrote to the government inspector on behalf of the Ballroom, where he cut his teeth with the Boomtown Rats, saying its closure "would be a substantial blow to the UK's music scene".

Kate Fuller, owner of the 67-year-old venue, said: "This decision vindicates our argument that the development was unjustified and would have destroyed the character and vitality of Camden Town."

Camden Council rejected the ?100 million scheme in 2003 but the public inquiry followed an appeal by LU.

Mr Prescott's decision now is a setback to LU's plans to modernise the 1907 station - one of the most overcrowded, with about 23 million passengers a year.