The leadership of Bradford Council has survived a vote of no confidence amid criticism over its handling of the £50.5m publicly funded venue, Bradford Live.
The music venue was due to open next month, but performances were cancelled when NEC Group pulled out of the deal.
The 3,800-seat venue, which the local authority has invested £43m into, will now have to secure another company to run it.
The Conservative group tabled the no confidence motion following the NEC Group’s withdrawal.
The motion was defeated by a margin of 16.