A bin depot was set to move from its Lucy Road base to a site between the pier and Adventure Island.
The depot, consisting of ten rubbish bins, would have been relocated to land in Marine Gardens, currently a car park for pier staff and also used for equipment storage.
The plans prompted fears the bins would attract rats and seagulls and lead to smells, noise and traffic problems every summer.
Lib Dem, Graham Longley, the new councillor responsible for enterprise, tourism and economic regeneration, yesterday called a halt to the plan.
He said: “The guys who do a splendid and brilliant job keeping the seafront tidy used bins in the Seaway car park, but it was proposed to move in to an area near the pier train entrance and the Three Shells.
“There would have been noise and smells in the summer, so I have put a stop to it indefinitely.
Council officers will have to find some alternative. I have been given assurances they will find somewhere else.”