London Mayor Boris Johnson has quashed the proposed rise in congestion charge for vehicles deemed the most polluting.
Former mayor Ken Livingstone planned to raise the daily levy from £8 to £25 from October, prompting car maker Porsche to bring a legal challenge.
Mr Johnson pledged in his election manifesto to scrap the £25 charge and said the move would save legal costs.
The mayor has also scrapped a proposal to allow some low emission cars free entry to the congestion charge zone.
Mr Livingstone said ditching the charge was a "further blow" to tackling climate change.