Edinburgh City Council has voted against plans for a Workplace Parking Levy, which would have charged businesses £650 per space provided to workers.
The scheme was first outlined in 2018 but has been rejected after concerns were raised about the potential impact on low-paid workers and increased parking in residential areas.
Liberal Democrat group leader Kevin Lang said that the charges could be easily dodged by stopping vehicles outside houses, while transport convener Scott Arthur suggested that the scheme may not actually have any impact in reducing car use.
The Green Party and the SNP had backed the project but it was ultimately rejected by a vote of 6-5.
The decision has been met with mixed reactions. Some businesses have welcomed the move, saying that it will save them money, while others have expressed disappointment, arguing that the levy would have helped to reduce traffic congestion and improve air quality.
It remains to be seen whether the council will reconsider the Workplace Parking Levy in the future. However, for now, the plans have been scrapped and businesses will not be charged for providing parking spaces to their employees.