Campaigners are celebrating the Government's decision to abandon controversial plans to offload thousands of hectares of woodland, including the New Forest.

Ministers have decided to halt consultation into proposals to dispose of Forestry Commission land across the UK and are expected to make a formal announcement tomorrow.

Under the proposals the New Forest would have been leased to a charity, possibly the National Trust.

But the scheme came under fire from Forest groups, who warned that a charity might be forced to introduce car parking charges and other fees to offset the area's annual deficit of almost £3m.

The Government climbdown was welcomed by the New Forest Association, which has watched over the area for 140 years.

Chairman William Ziegler said: "They didn't even complete their consultation process before they worked out that the strategy was flawed and against the will of the people. Happily they have listened.

"There's definitely a mood of celebration in the air today.

"The Government tried to move too fast. If they'd done a bit of homework they might have been able to approach it in a totally different way and maybe got some of the things they wanted.

"But they didn't read the signs and stirred up Middle England big time."

However, Mr Ziegler said he was still concerned about the potential impact of any cuts imposed on the Forestry Commission as part of the spending review.

"I'm worried that they might affect the commission's ability to repair and maintain the Crown lands," he said.

Julian Johnson, chairman of the New Forest National Park Authority, also welcomed the ministerial climbdown.

He said: "I'm delighted to hear the news. Clearly the Government has listened and understood the concerns of local people and everyone else who expressed a view.

"I haven't got all the details yet but I imagine we'll go back to the status quo. I don't think the Government will want to ruffle any more feathers."

New Forest West MP Desmond Swayne had spoken out in support of the Government's plans.

But today he admitted they have been "sprung on the public without consultation with the key players" and added: "Now we're back to square one."

A demonstration due to take place in Lyndhurst on Saturday is expected to turn into a victory rally following the Government's change of heart.

Prime Minister David Cameron heralded the about-turn at Prime Minister's Questions yesterday, when he admitted he was unhappy with plans to sell, lease or give away Britain's ancient forests.

The scheme was intended to give communities, charities and the private sector greater involvement in woodland.

But the suggestion attracted cross-party opposition and sparked a public outcry.

Critics argued it threatened public access and could lead to forests being damaged.

The proposals stemmed from the Government's belief that the Forestry Commission should not be both the regulator and the biggest player in the timber industry.

Some £140-250m would have been raised from selling the leaseholds of the commercially valuable forests.