A development consent order (DCO) for a tunnel, two junctions and a northern bypass near the world heritage site has now formally been revoked by the Department for Transport (DfT).
The scheme was originally green lit in 2023 but was put on hold in 2024 after £179.2m was spent – after it emerged costs were expected to reach £1.4 billion.
Local Reform MP Danny Kruger has called the decision “scandalous”.
Council member Martin Smith said: “This is a huge blow for Wiltshire, our communities and the wider South West region.
SWe are extremely disappointed that the government has decided to revoke the DCO for the A303 stonehenge tunnel.”
The DfT cited “exceptional circumstances.”
The DfT said the decision had been made by transport secretary Heidi Alexander and that it “no longer aligns with current strategic policy objectives”.
Scrapping the scheme would allow “alternative infrastructure or development proposals to come forward that better reflect current needs,” it said.