Long-suffering Ely residents, who have been denied parking permits, will have to wait at least another six months for a fairer deal.
Liberal Democrats, who have been fighting their corner, have been told they cannot challenge the Tories' decision until the summer.
It leaves householders shunting their cars around the city to comply with timed restrictions while workers travelling into Ely are legally entitled to park.
"This is an absolutely ridiculous situation," said East Cambridgeshire Liberal Democrat leader, Councillor Gareth Wilson. "We have people living in the city, paying their taxes to the district council who are being inconvenienced while those who live outside are given permits to park."
The Tories decided to delay a decision on granting residents' parking permits until Cambridgeshire County Council considered decriminalisation, which could take 18 months.
Cllr Wilson added: "The issue of residents' parking permits has nothing to do with decriminalisation. We intend to fight on to get this situation resolved as quickly as possible and redress the balance."
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