The people of Manchester have voted no to proposals to introduce a congestion charge to the Greater Manchester area.
If approved, it would have sparked off a £2.8bn investment into transport in the area, which would have included a peak-time charge of £5 for drivers who pass through two ring roads around Manchester.
The results showed 79 per cent of the voters said no, against 21 per cent voting for the measures. An application to the government's Transport Innovation Fund (TiF) will not now go ahead.
Sir Richard Leese, leader of Manchester City Council, said they always pledged to listen to what the people want.
"The referendum has given a very clear outcome. I'm sure the economic downturn, which is hitting everyone hard, has had a part to play. Investment in public transport in Manchester will remain a priority for the city council and our commitment to face up to the challenges going forward remains undiminished."
Lord Peter Smith, chairman of Association of Greater Manchester Authorities said the results were "very clear". He added: "This is not just a vote no for congestion charging, it's a vote no to improvements on the trams railways and buses and there will now be no improvements."
The Liberal Democrats' transport spokesman, Norman Baker, said people from Manchester had clearly rejected the government's "centralised and prescriptive approach".
"Today's result is not a condemnation of the principle of congestion charging but a response to the specific Manchester scheme and the Government's attempt to force councils to follow one single route," he said.
"Manchester mustn't be punished for today's vote. The city may now lose vital investment, yet major public transport improvements are just as necessary as before. People will be much more likely to back limits on car use if they have decent alternatives."
Baker added that a revenue-neutral system of road pricing should replace vehicle excise duty and provide a "fairer, greener motoring charge".
The National Alliance Against Tolls (NAAT) said they were delighted that the congestion charging proposals were defeated, calling it a "victory for the people over the establishment".
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