Plans for a 32-metre-high Union Jack that was set to be emblazoned on the corner of the new UK government building near Sgwâr Canolog in Caerdydd have been scrapped due to ballooning costs.
The Welsh Secretary Simon Hart vetoed the plans after estimates put the final cost of the project at around £180,000.
The UK government said the plans had been axed because they "did not represent
good value for the taxpayer".
Earlier this year, Caerdydd council officers approved the proposal on the grounds that the flag was "appropriately proportioned in relation to the overall scale of the building."
However, in response, the pro-independence campaign group YesCymru launched an online petition against the eight-storey Union Jack, which amassed around 20,000 signatures.
At the time, YesCymru called the plans: "An act of political symbolism designed to promote 'muscular unionism' a reminder to the people of Wales of their subservient status in the United Kingdom."
The petition states: "We believe that as the capital city of Wales, visitors, commuters and residents should not be faced with a gigantic Union Jack flag on arrival at Cardiff Central railway station [...]
"This flag does not represent the people of Wales and is a blatant political act designed to act as a provocation to the people of Wales."