Wheel clamping on private land is to be banned by the Government, with legislation possible by early 2011.
The ban will be introduced with the Freedom Bill that is to be put before Parliament in November.
Bullying and extortion
The Home Office said that there were too many cases of bullying and extortion for the industry to continue.
Home Office minister Lynne Featherstone said: 'For too long, motorists have fallen victim to unscrupulous tactics by many clamping firms.
'A ban on clamping and towing away on private land will end this abuse, and companies who decide to flout new laws will face severe penalties.'
There's no word yet on what these 'severe' penalties will be, however.
Carry on clamping for local authorities
It has also been revealed that local authorities will retain the power to clamp and tow cars away on the road network.
The end of private clamping in England and Wales follows the lead of Scotland, which banned the practice several years ago.
Currently there are 2150 clampers accredited by the Security Industry Authority, although its regulatory system is entirely voluntary and does not reveal how many individuals or companies are currently clamping and towing on private land.