The Government has confirmed that two major road schemes for the West Midlands are being shelved.
But the region will benefit from an extra £1bn for road and traffic schemes over the next seven years, Transport Secretary Alistair Darling announced in the Commons.
As part of the announcement of a £7bn roads and rail package - the biggest for a decade - the Government said it had deferred plans to widen the M42 in the West Midlands to a 12-lane motorway.
The proposed Western Bypass for the M6/M5 link around Wolverhampton and Stourbridge has also been shelved.
But Mr Darling said a pilot scheme of Active Traffic Management would be piloted on the M42 through the region.
This would allow motorists to use the hard shoulder during peak times.
No new money was announced for improvements to the crowded New Street Station in Birmingham.
The extra £1bn for the region's transport infrastructure will be spent on a number of minor road schemes, more light railway systems such as Birmingham's Metro network and park and ride schemes in and around city centres.