Transport Secretary Ruth Kelly has announced she is axing plans to use satellite technology to track cars and force their owners to pay for driving by the mile on motorways in an attempt to cut congestion.
The Government wants to ease congestion in the short term, rather than wait for the technology and political consensus required to introduce the more radical national scheme.
The pay as you drive lanes will come into force around 2010.
Kelly will also publish maps showing where 435 miles (700km) of extra lanes will be built on existing motorway hard shoulders. She will suggest that in each case one lane should be set aside either for motorists willing to pay a premium to escape congestion, or for those who are sharing a car.
It's also planned to use technology to manage the flow of traffic by closing entire lanes, or imposing speed limits right across four lanes.
Extra cash to support congestion charge schemes in cities will also be provided. At present only Manchester and Cambridge have expressed interest in following London by introducing an urban congestion charge.