The Big Issue believes the council has "climbed down"

The magazine, which is sold by homeless people, claimed it had forced the city council into a "humiliating climb down" after it allegedly banned vendors from selling in the city centre.

It said the threat of an injunction forced the council to admit it could not legally ban vendors.

But the council insists no ban was ever imposed.

Twelve Big Issue sellers were among 50 people charged with drugs offences after a Merseyside Police operation last week.

'Stalin's Russia'

The magazine said that until Friday vendors had faced the threat of arrest if they tried to sell.

But a Liverpool City Council spokesman said it had never banned vendors although it had suspended the pitches.

The spokesman added: "The Big Issue seem to have got the impression that this is a police state or Stalin's Russia - we don't have the power to ban anything.

"What we do have is a view about the wisdom of selling magazines when there are question marks about the management of it.

"Some vendors have been charged with drugs offences and we suggested a cooling off period while the magazine paid attention to proper systems of checking of their vendors and other concerns."

'No dispute'

The spokesman said senior council figures were due to meet Big Issue representatives in the near future.

Merseyside Police said the magazine appeared "to imply the operation was specifically targeted at Big Issue sellers for selling the magazine".

A spokesman added: "This is not the case. Merseyside Police is not in dispute with the Big Issue, rather, Operation Manton was an intelligence-led operation which sought to gather evidence and bring before the courts people selling drugs in Liverpool city centre.

"Fifty people now find themselves charged and before the courts as a result of Operation Manton."