A city which has turned its back on congestion charging unveiled its alternative yesterday - a jam-busting computer nicknamed The Brain.

Orange lights flickered into action to launch one of a network of electronic noticeboards in Scarborough Road, York. "Congestion in Gillygate," it warned a silver BMW and two white vans as a small girl dawdled past on her pink bike.

It added a left-pointing arrow and the message: "Parking spaces: 779." A couple of minutes later the figures flickered again as the spaces fell to 749.

The £1.5m system, the first in Europe, is the latest stage in York's three-part attempt to control the number of cars without hitting residents in the pocket.

"The historic centre's completely pedestrian and park-and-ride is catching the tourists and day visitors on the outskirts," said Ann Reid, the Liberal Democrat council's executive member for planning and transport.

The job of The Brain, whose eyes and ears are scores of cameras and wired links to car parks, buses and air pollution monitors, is to guide locals around the city.

"It's designed to work for York people who know their way around," said Ms Reid. "The arrows advise them which way to go on the ring road to find parking; and if they know Gillygate's jammed, they'll know the best other ways through.

"Our thinking about charges is that you shouldn't be penalised if you live in the city. You might be someone infirm who wants to see their solicitor, or you might be shopping and have lots of bags."

The system also ties in with York's discount parking scheme for residents, who pay 20p an hour less than visitors to the city.

The Brain is preparing to flex larger muscles with a computer network which already changes traffic lights to give priority to the 97 buses travelling the city at any one time. York has seen a 14% rise in bus use in the last two years, with a 4.6% fall in traffic congestion and significant increases in cycling and walking.