A London council has been ordered to tear down an “unlawful” Low Traffic Neighbourhood which raked in £1 million in fines.
The High Court has told Lambeth Council it must remove the LTN in West Dulwich with immediate effect and denied it permission to appeal.
The south London council will also have to cough up £35,000 in legal fees incurred by the West Dulwich Action Group (WDAG), which brought the case.
But campaigners are calling for this to be increased to include the £1,080,580 in penalties levied against drivers since the scheme was introduced in September 2024.
Wednesday’s ruling marks the first time an LTN, designed to create safe cycling and walking routes by closing off roads to cars, has been shut down by the courts.
Last month, Mr Justice Smith said Lambeth had acted unlawfully when designing the controversial measure by ignoring residents’ “legitimate concerns” that it could cause more congestion and pollution.

In his written conclusion published on Wednesday, he wrote: “Here the claimant came to court seeking a quashing of the (traffic) orders. It has gone away having achieved that objective. It has therefore been completely successful.
“The fact that the claimant has succeeded in only one of its three grounds of claim does not alter the fact that it has been wholly successful in its aims.”
According to WDAG, two-thirds of people who responded to a consultation about an 18-month trial on Idmiston Road "were either unhappy or very unhappy with what was proposed".
But Lambeth’s deputy leader, councillor Rezina Chowdhury, went ahead with the programme, claiming "we know these things work" to reduce traffic and the number of accidents.
WDAG, which represents local residents and businesses, had requested Lambeth to clarify whether it would issue refunds to motorists.

A spokesman said: "This is not just about legality — it's about fairness and public trust. If the law was broken, the money should be paid back.
"This case should never have gone to court. It could have been resolved through proper, respectful dialogue. Instead, Lambeth chose to defend litigation over listening — and the public has paid for it."
In response to the decision, Lambeth said it "remained committed to delivering our programme to reduce road danger for those most at risk and make our streets calmer, more community-friendly places”.
It added: "The High Court has ordered the removal of West Dulwich street improvements. No further fines will be issued, and we are removing the scheme as soon as it can be done safely."
The ruling comes just weeks after Brixton residents won a High Court challenge against Lambeth Council over the use of Brockwell Park for music festivals this summer, arguing that council did not have the correct planning permission.