Plans to put a cap on the number of sex shops and lapdancing clubs in the city were thrown out by councillors.

Instead they have decided each application should be judged on case-by-case merit.

Oxford City Council had outlined plans to set a neighbourhood limit on the number of “sex establishments” it would allow.

Sex establishments are classed as sex shops, sex cinemas and “sexual entertainment venues” such as lapdancing clubs.

But at a meeting of the general purposes licensing committee, it was agreed the proposals would be fraught with difficulty.

Julian Alison, licensing team leader, said the approved draft sex establishment licensing policy will now go out to public consultation.

Last year The Lodge, the city’s only lapdancing club, lost its licence for its premises in Pennyfarthing Place, behind the Westgate Shopping Centre.

Councillors said the club, was too close to churches, shops and tourist attractions. In July it won backing to open at the former Coven nightclub in Oxpens Road.

Club owner Al Thompson, said he was glad with the council’s decision.

He said: “Areas grow and change.

“I think it’s sensible that each application should be taken on its own merit.”

The draft policy will go out to public consultation from November 14, to December 31 and responses will be considered by the committee when it meets again on February 22, 2012.