PROPOSALS for parking to be made free after 3pm to boost business were halted at a council meeting.
Conservative councillors said the move could help struggling businesses in January and February.
And city centre businessman Phil Pinder called on councillors to support the plans, saying it could help tackle what are expected to be "dire" trading conditions at the start of the year.
But Andrew McGuinness speaking for York Quality Bus Partnership said the move would encourage people back into their cars, increasing traffic and worsening air quality.
And a spokesperson for York Cycle Campaign raised concerns about safety if the plan encouraged more cars onto the roads.
They also called for the council to relax the rules around people cycling on pedestrianised streets.
Cllr Martin Rowley, who put forward the plans, said: "I genuinely hoped this could be a non controversial motion that carried cross party support, where we could help businesses with a crucial lifeline."
But Cllr Nigel Ayre said he understood the reasoning but the plan failed to appreciate how much money the council gets from parking and the cost of the change.
He added that it would take two months and £35,000 to reprogramme the parking machines.
Councillors voted for the proposals to be changed, scrapping the free after 3pm plan but committing to "further parking and sustainable travel incentive initiatives to be brought forward including specific time limited initiatives as part of the economic recovery plan".
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