Legal action to evict anti-capitalist protesters from the doorstep of St Paul’s Cathedral was halted yesterday.

St Paul’s Canon Pastor the Right Reverend Michael Colclough said suspending the legal bid was “the right way to go”.

The City of London Corporation, which was due to hand a letter to the protesters warning them they had 48 hours to clear the site or face High Court proceedings, said it was “pausing” its legal action.

The protest outside St Paul’s has caused divisions in the cathedral’s hierarchy and led to the resignations of its dean, the Right Rev. Graeme Knowles, Canon Chancellor of St Paul’s Giles Fraser and part-time chaplain Fraser Dyer.

The cathedral said Rt Rev. Knowles’s resignation had given it the “opportunity to reassess the situation”.

Speaking after a meeting between church officials and protesters, Rt Rev. Colclough said: “This has been an enormously difficult time for the cathedral but the chapter is unanimous in its desire to engage constructively with the protest and the serious issues that have been raised, without the threat of legal action hanging over us.

“Legal concerns have been at the forefront in recent weeks but now is the time for the moral, the spiritual and the theological to come to the fore.”

He said he believed the protesters had the right to protest and hoped the church would act as a brokering agent in the dispute.

The Bishop of London, Dr Richard Chartres, said: “The alarm bells are ringing all over the world. St Paul’s has now heard that call.

“Today’s decision means that the doors are most emphatically open to engage with matters concerning not only those encamped around the cathedral but millions of others in this country and around the globe.”

Stuart Fraser, the corporation’s policy chairman, said: “The church has changed its standpoint and announced it is suspending legal action on its land.

“Given that change, we’ve pressed the pause button overnight on legal action affecting the highways, in order to support the cathedral as an important national institution and give time for reflection.

“We want to leave more space for a resolution of this difficult issue, while at the same time not backing away from our responsibilities as a highway authority.

“We’re hoping to use a pause, probably of days not weeks, to work out a measured solution.”

The corporation added it would make a further announcement tomorrow. The announcement by St Paul’s was welcomed by protesters at the camp. Spokesman Ronan McNern said: “It is really positive and we are very excited about hopefully great new beginnings.”

Ciaron O’Reilly, 51, a worker with the homeless in London, said: “It is a great move from the Anglican Church and it is good to try to work with the movement instead of resisting it.”

Eileen Finnan, 52, said: “I think it is great, because we are doing great things here and sending out an important message.”Sandra Quayle, 48, said: “It feels really special because it is from St Paul’s and we are on holy ground.”

Naomi Colvin, 31, from London, who is acting as a spokeswoman for the protesters, said: “We welcome this move from the Corporation of London. We look forward to continuing with our negotiations with the cathedral and trust that all outstanding issues will be resolved.

“I think not only does this decision from the City of London give the church time for reflection, it also gives us time for reflection and time to discuss the important issues, which is why we are here.”

The campsite was set up on October 15 after activists organised on Facebook and gathered in the City to attempt an occupation of the London Stock Exchange in imitation of anti-capitalist protests on Wall Street.

When police cordoned off the entrances to the square where the Stock Exchange is located, protesters set up tents in front of the nearby cathedral instead.

The demonstration on October 15 was part of a worldwide day of action by anti-capitalists which led to violence in cities like Rome and Nice in France.

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