New York City Mayor Michael Bloomberg has all but conceded defeat on his plans to introduce a congestion charge on traffic into Manhattan.

The plan, similar to the one introduced in London in 2003, did not get approval in the New York State Assembly. But despite the setback, Mr Bloomberg vowed to go ahead with other proposals to help improve life in New York. The mayor is a potential presidential candidate and earlier announced a 127-point environmental plan.

Michael Bloomberg did not mince his words when he reacted to the lack of backing for his plan - introduced three months ago. He said it was a disgrace. He added that it was a major setback mostly for the people who breathe the air in New York city, especially the children.