At meeting of East Lindsey District Council's executive board, members scrapped an earlier proposal to demolish the property to allow redevelopment of the site.


Instead, its officers will enter into talks for a 'negotiated disposal to the town council with a view to offering a freehold transfer of the asset'.


The climbdown - which came in response to a long-running community campaign - brought cheers from the 40 or so supporters who caught a hired coach to attend the meeting at Manby.


On their behalf, campaigner-in-chief Coun Bill Aron stood up and expressed gratitude for the decision.


Later, the victory was hailed by the strains of a piper as the party boarded the coach to return home.


During the debate, Coun Ed Mossop applauded the determination of townsfolk to make a success of the hall.


"Take it and enjoy it,"he urged. "I hope the future is rosy".


Noting that the town council would need both to increase its parish precept and find grants, Coun Mossop continued: "That's how we do things in the country - it's a process already familiar to many village hall committees and parish councils."


On behalf of the town council, Coun Fiona Martin welcomed the end to a 'long saga' and said the size of the public turnout - 'unprecedented for an executive board meeting' - demonstrated the strength of community support for survival of the town hall.


Also supportive was Coun Janet Harrison, who had chaired the task-and-finish group that recommended giving the town council the chance to run the building.


As well as providing a home for community activities, it would provide accommodation for the town clerk's office and a venue for town council meetings.


"It's a perfect solution," she maintained. "Let's not miss the opportunity."


Despite the optimism, ELDC is likely to drive a hard bargain in the forthcoming discussions.


Council leader Coun Doreen Stephenson insisted that the town council must come back with a 'robust business plan' by January 31.


There are also likely to be clauses allowing ELDC to 'claw back' an interest in the property in the event either of it falling into disuse or being sold within a certain period.


Along with colleagues, joint deputy leader Coun Jeremy Webb supported the proposed transfer, but he warned of the risk of a 'hangover' after the party.


He asked: "Has the public of Horncastle got the appetite to fund the huge financial burden of this enterprise?"


* Will the town hall be a 'huge burden' on the council tax payers of Horncastle? CLICK HERE to email your views.