Voters have rejected plans for congestion charging in Manchester.
Residents were asked to decide whether to introduce a two-ring scheme in Manchester as part of a Transport Innovation Fund.
Motorists would pay up to £5 at busy times from 2013, with the congestion charging scheme running from approximately 7am to 9.30am and 4pm to 6.30pm on weekdays.
If green-lighted, £3b of public transport improvements had been promised by advocates of the scheme.
Unlike London, vehicles would be charged only for journeys into Manchester centre during the morning rush-hour and going out during the afternoon peak traffic period.
Angie Robinson, chief executive of Greater Manchester Chamber, said of the no vote: "The politicians tell us this was the only offer on the table, so the proposal will not go ahead.
"However, business is concerned about congestion which has a negative cost to them and most people, including business, want to see public transport improve.
"The question is now, how can that happen? What options can politicians and businesses come up with to address the needs of the city region in the future?"
In London mayor Boris Johnson has said he will abolish the controversial western extension of the zone, introduced last year by his predecessor Ken Livingstone.
By Chris Druce
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