The Department for Regional Development will not be introducing controversial parking charges in 30 Northern Ireland towns.

The news signals a resounding victory for the Belfast Telegraph's Park The Charges campaign.

A formal announcement is not expected in the Assembly until next week, but it is understood the DSD has made a U-turn on the proposed scheme.

Glyn Roberts, chief executive of Northern Ireland Independent Retail Trade Association (NIIRTA), said that it would be just and proper if DRD Minister Danny Kennedy confirmed the decision.

"The move to scrap charges would be very good news for town centres and the economy as a whole," Mr Roberts said. "Town centres make a huge contribution to the economy and anything that is a barrier to trade must be removed. We need to attract more people into our town centres."

A study from the Federation of Small Businesses (FSB) found that almost half of members (49%) believed charges would have a "detrimental impact" on their livelihoods.

Roger Pollen, FSB head of external affairs, said this was an important step on the road to economic recovery.

"If it is confirmed, then small business owners, shoppers and employees across Northern Ireland can breathe a collective sigh of relief," Mr Pollen said. "While we welcome this decision, we must not, however, forget that town centres are still in a precarious position."

Park The Charges is the latest victory in a series of consumer campaigns spearheaded by the Belfast Telegraph.

Leading retail expert Donald McFetridge said the development represented a ray of sunlight in an otherwise gloomy economic vista.

"Already cash-strapped consumers who are making fewer and fewer car journeys are going to be delighted to hear that, for once, their voice has been heard and listened to," he said.