LABOUR councillors may be forced to reconsider their controversial decision to bail out the Arcade site scheme with taxpayers' money.

The Labour group's six cabinet members, without the support of either the remaining four Lib Dem cabinet members or following a vote at full council, decided to fund the redevelopment project by borrowing £35m after private developer St Modwen pulled out of financing it.

But under council rules, an extraordinary meeting of the full council can be called if five councillors request it.

This would give backbench and opposition councillors the chance to debate the scheme in public with leading councillors.

The full council would not be able to reverse the decision, it would only have the power to request that cabinet re-consider it.

Cllr Matt Davis, Conservative group leader, told the Guardian his group are considering requesting an extraordinary meeting.

He said: "The cabinet system is designed to railroad thorugh things like this without proper decision or debate "This will allow us to have a proper discussion in public about this."

Cllr Davis is concerned about the future of Waltham Forest Pool & Track, which will be sold to recoup the borrowed £35m, and the ability of the council to borrow the money. He also doubts whether a swimming pool would be an effective "anchor tenant" for the scheme.

Cllr Davis said if he was council leader he would level and concrete over the Arcade site, and re-site Walthamstow Market there temporarily until the economic outlook improves. He said this would improve the ability of the shops to trade.

The Conservative group leader said he would like to call the extraordinary meeting with the Lib Dems, and would like the two groups to write the motion together, in order to have more impact.

But angry Lib Dem leader John Macklin ruled out working with the Tories on the issue after Cllr Davis spoke to the Guardian about it.

He said: "I told him I would discuss it with my group and then we would talk over the weekend, instead he went rushing off to the press.

"He is a loose cannon, and is just after a soundbite with the press rather than being interested in trying to get a good decision."

Cllr Macklin said an extraordinary council meeting is just one of a number of options the Lib Dems are looking at to change the decision. He is looking at the possibility of calling the decision in for scrutiny.

St Modwen was due to finance a scheme consisting of an 18-storey tower, homes, shops and community facilities.

But following, the announcement that a swimming pool would be the "anchor tenant" and a drop in St Modwen's share price, the company pulled out.

St Modwen will still be paid £500,000 for design work on the scheme.