A decision to ban fracking in Waltham Forest has been welcomed by green activists.
The government recently offered council's financial incentives to agree to allow hydraulic fracturing.
These included the opportunity for authorities to keep 100 per cent of business rates.
But deputy council leader Clyde Loakes rejected the offer, describing it as “a crude manoeuvre.
Despite the Royal Society and the Royal Academy of Engineering finding it to be safe if properly regulated, Cllr Loakes said: "Regardless of what financial benefits might be on offer, we will not compromise the safety and wellbeing of our current or future residents."
Waltham Forest Greenpeace chairman, Dave O’Carroll, said the decision was “smart and sensible”.
“The risks of fracking far outwiegh and benefits and if allowed, if would have had a small effect on household bills anyway,” he added.
"They have put the interests of the residents and the local community first and this should send a strong mesage to other councils. The decision should be applauded."
According to London Mayor Boris Johnson, thousands of jobs would be created and homeowners and businesses will be offered cheaper electricity if fracking operations were allowed.
Announcing the initiative, prime Minister David Cameron said: “A key part of our long-term economic plan to secure Britain’s future is to back businesses with better infrastructure. That’s why we’re going all out for shale. It will mean more jobs and opportunities for people, and economic security for our country.”
"Shale gas represents a huge economic opportunity for the UK with research from the Institute of Directors showing investment could reach £3.7 billion a year and support 74,000 jobs in the oil, gas, construction, engineering and chemicals sectors. The industry will today set out proposals on how best to secure a role for UK companies as part of its supply chain as shale gas production develops in the UK."