Darlington Council has reversed its decision to increase charges in short stay car parks on a Sunday.
It admitted that its policy to change the price from £1 a day to £1 an hour five weeks ago was "not the right one".
The U-turn comes after a decrease in footfall.
Bill Dixon, leader of Darlington Council, said: "This didn't work, we've monitored what's happened and it's very clear the policy is not the right one."
Mr Dixon added: "We've seen numbers drop to levels that we would rather not see.
"We want people to come and shop here and enjoy what is a very attractive town centre. It became apparent that the changes in our car parking charges were not helping."