Lancaster City Council (LCC) has confirmed that it has pulled out of a public inquiry set up to examine plans for the £150m mixed-use redevelopment of the city's Canal Corridor North site.

Centros, the London-based developer behind the proposals, had already refused to take part in the inquiry in protest at the government's decision to call in the scheme, as well as raising concerns over the intervention of English Heritage. The council has now also withdrawn from the inquiry after it said that a number of questions had been raised that could only be answered by Centros, while also claiming that English Heritage had altered its position to oppose elements it had previously supported.

LCC leader Stuart Langhorn said: "It has always been the city council's position that it would present evidence to the inquiry in relation to its own decision to grant the development planning permission - not to defend the applicant. "As many of the questions which have arisen are only ones which the applicant could answer we have decided to withdraw from any further participation."

Following the council's decision to pull out, Centros chief executive Richard Wise said: "It is high time that the Government called English Heritage to heel. Their contribution to this development has been erractic at best and is likely to send shockwaves throughout the property sector as well as local authorities trying to achieve regeneration of their town and city centres. P "This level of performance by English Heritage - when their full attention has only really been given to the project at the public inquiry stage - is woeful. With the Secretary of State giving in to their late intervention, neither developers nor local authorities can have confidence in the planning system."

Plans for the Canal Corridor North scheme feature six public spaces, including a new park leading to the city's canal, the creation of canal-side restaurants and cafés and major improvements to the Dukes and the Grand theatres. New premises for the Musicians' Co-operative 320,000sq ft (29,729sq m) of retail space and 179 residential units also form part of the scheme, which was given the green light by Lancaster City Council in October.

English Heritage is due to give at the evidence at the inquiry when it resumes on 30 June.