The town has seen a number of road changes
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The latest ideas to improve the flow of Kendal traffic have been rejected by councillors.
Proposals involving changes around Stricklandgate failed to win support at a meeting of councillors on Friday.
About £1m has been set aside for the work, which will be spent on another Cumbria project if it is not used for Kendal's traffic.
Highways engineers have predicted gridlock at key junctions if nothing is done.
And the local bus company is threatening to withdraw services unless improvements are made.