RYE Town Council has held back its decision to site a loading bay outside the George Hotel following a number of objections from local traders.
Instead it will be returned to the council established Highways Forum who will consider alternative options before making a final decision.
The need for a loading bay arose as a result of serious concerns that pedestrians were being put at risk due to delivery vans and lorries parking on the pavement to unload at Lion Street.
A temporary solution has alleviated the problem and reduced the risk with delivery vehicles now parking on the corner opposite the Town Hall and wheeling deliveries to the George on trolleys.
The council made the decision to refer back to the Forum when it met on Monday.
David Nixon, from Rye Chamber of Commerce, said the Chamber was still in favour of keeping with the original plan of a bay outside the George.
The George says this would have a disastrous affect on business, particularly with weddings, and would have a detrimental knock-on affect to other Rye businesses.
Mr Nixon said: “The Chamber did not want to see any loading bay but said it would support one close to the George where the problems originate from.”
Rye resident John Izod said: “It is ludicrous and vindictive to crucify a business like the George in that way.
“The Chamber is not the voice for all shops and businesses in Rye. It is very lack-lustre and knows it.
“It has very little teeth and very few people attend its meetings. I am not sure why it is making such a big noise now.”
Rye county councillor Keith Glazier said: “There are businesses and residents who will suffer if we get this wrong. It is vital we get it right.
“There must be a solution that suits all people involved.”
Cllr Ian Potter said: “This should go back to the Highways Forum for them to look at it again.
“The George has come to the table late but it has still come to the table and we should listen to what it has to say.”
Deputy Mayor Cllr Bernardine Fiddimore said: “The fact that we have had objections from people to the proposed loading bay means we do need to look at this again. I do think there is room for improvement.”
Cllr Mary Smith said: “There are big school parties of pedestrians around Rye at the moment. The situation is dangerous and something does need to be done about it.”
George director Alex Clarke stressed that he was still keen to work with the council to find a solution that is acceptable to everyone.
One of the options put forward by the George for consideration is a loading bay further along the High Street outside the Medusa shop, which it owns.
The Highways Forum meet to discuss the issue on April 29.