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More than 1,000 Islington tenants will march on Downing Street on Sunday after vowing to fight a government housing bill “all the way” at a fiery Town Hall meeting.

Tuesday’s meeting was billed as an information event to tell council and housing association tenants how the Housing and Planning Bill would affect them – but it turned out to be a noisy rally attended by more than 500 people.

In a rousing speech, Caledonian ward Labour councillor and council tenant Una O’Halloran described the Bill’s “pay-to-stay” policy as “worse than the poll tax”.

“It’s social cleansing,” she told tenants. “You need to get your neighbours out, get your kids out and show Cameron that he can’t do this. We’ve got to get out there because they [the government] will do what they like.”

In an indication of the opposition to the plans, Islington Assembly Hall proved too small for the tenants. Dozens who had to be turned away watched proceedings from an overflow room.

Cllr O’Halloran said: “I’m so glad that so many people have come out tonight. We need everybody, all the councillors, everybody who thinks this bill is absolutely disgusting. Let’s show Cameron. Let’s get him out of Downing Street.”

Thousands are expected to march on Sunday in protest at the bill. The demonstration has been backed by Labour leader Jeremy Corbyn, Islington South Labour MP Emily Thornberry, Labour councillors and Green councillor Caroline Russell.

Those at Tuesday’s meeting were most concerned at the “pay-to-stay” plans, under which households earning more than £40,000 will be charged sky-high market or near-market rents, raising fears that many tenants could lose their homes.

Islington housing chief Councillor James Murray was repeatedly challenged to say whether the council would implement charge the higher rents.

One man said: “We need to know how far you are willing to go. If ‘pay to stay’ goes through, let’s have a rent strike. We did it with the poll tax, it can be done. This mob [the government] need kicking out.”

A woman told Cllr Murray: “You say that the government doesn’t understand what’s going to happen [if the bill goes through]. They do, they just don’t care. We’re asking you to stand up and say to us: ‘We won’t implement it.’ James, make a stand.” Her comments were met with rapturous applause.

The housing chief replied: “You ask me about implementing this, but I’m not going to make any promises that I can’t keep, about things you might not be able to do within the law.”

We need to be united in opposition against the bill and we need to fight the government on this.”

However, moments later, when councillors were again asked to “stand up”, Cllr O’Halloran got to her feet to loud applause, saying: “Islington [Council] is often the first to do something and I want Islington to stand up and say that we don’t implement it. The bill is disgusting and it’s social cleansing and we need to stick together.”

Town Hall leader Richard Watts called on those present to “unite”. “I love Islington because of you who are here today,” he said. “We are going to fight this bill, and I don’t want us to be divided because of something that might happen in the future. We are going to stop this now.”

Tenants, trade unionists and campaigners voted unanimously last month to launch a borough-wide campaign to fight the bill, currently going through the Lords, where it is facing heavy opposition. The Conservatives do not have a majority there.

"The bill includes plans to extend the right to buy to housing association tenants, funded by forcing councils to sell off “high-value” properties, which Islington estimates could mean a loss of 500 council homes a year.