Cambridge City Council has scrapped its plans to introduce a London-style congestion charge in the city.
Proposals were in place to charge drivers at least £5 a day to drive into or around a 'Cambridge Sustainable Travel Zone'.
It was expected to raise more than £26m per year to help fund improvements to public transport and cycling infrastructure.
Cambridge City Council leader councilor Mike Davey told the BBC the plans were "not going to go ahead" after the Labour group on the council decided to withdraw its support.
Concerns over the impact on low income families were cited as the reason for the change in direction.
The plans failed to win mass support in the city, with 58% of respondents to a consultation opposing the charge.
Liberal Democrat councilors had previously voiced concerns in regard to the plans.
The London Ultra Low Emission Zone was expanded at the end of August, prompting fleet operators to voice concerns that more charging zones could appear in cities across the UK.
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