The local authority wanted to partly pedestrianise Academy Street as part of a major revamp it said would “strike a balance between delivering sustainable transport, city centre regeneration, and supporting the city centre economy”.

Among the project’s key features were the widening of pavements to make it more attractive for pedestrians as well as hospitality businesses and facilitate a reduction of vehicles in favour of trees and planting.

The decision follows a Court of Session ruling that the council failed to properly consult the public about its ambitions.

In the legal challenge, trustees of the owners of Eastgate Shopping Centre argued that proper consultation was not held on the plans and the impact on businesses had not been considered.

Moments after voting not to proceed with an appeal against the ruling, members of the council voted 30:23 against continuing with the proposals altogether. Four abstentions were recorded.

The local authority said: “At a meeting of The Highland Council held on Thursday 19 September 2024, Members of the Council made a decision on the Academy Street project in Inverness.

“Councillors voted for an option that stops the implementation of a Traffic Regulation order and brings the Academy Street Project to an end with all Covid interventions being removed.

“The decision made takes into consideration the challenges around funding and notes the huge amount of data collected during this project which could be useful for other projects in future.”

Scoop Asset Management, representing the Eastgate shopping centre, said: “We were pleased to hear the outcome of the vote made earlier today and thankful that common sense has prevailed.

“To abandon the scheme altogether is somewhat disappointing as everyone agreed that Academy Street is in need of some tender loving care. 

“However, officers will have known that dealing with such an important thoroughfare in isolation was never going to be a satisfactory long-term solution.  The scheme had the ‘potential’ to split the City Centre in half and have a catastrophic impact on businesses but for no good reason.

“Surely the way forward now, is for officers to produce a long term cohesive town centre master plan, if there isn’t one already, with a focus on improving accessibility for all forms of transport to & from the City Centre taking into account, for example; travel hubs, public transport, park & ride, level-crossings, etc.  

“A joined-up approach for a successful future City which includes streetscape improvements, traffic calming measures, speed restrictions, making it safer for pedestrians, those with mobility issues, parents with young children and cyclists.  This of course would be subject to a formal consultation.”