BRITISH Waterways says a million-pound overspend on restoration work on the Kennet and Avon Canal will not hold up the work.

The partnership, which includes British Waterways, the Kennet and Avon Canal Trust and local authorities, won £25 million Lottery funding towards the five-year £29.24 million project.

But it was revealed this week that the project is 3.5 per cent, or nearly £1 million over budget, largely due to rising costs and changes in environmental legislation.

A spokesman for British Waterways said: "This scheme was put together five years ago, and inevitably details and costs have changed.

"Going back to the Heritage Lottery Fund is very low on our list of options. British Waterways nationally is very successful in fundraising and the favoured option at the moment is the Landfill Tax Credit Scheme.

"We are confident we can make up the deficit and we do have 18 months still to go."

The partners also pledge they will not cut back on the planned programme of works. Project manager John Laverick said: "Throughout the project there has never been, and will not be, any dilution in the quality of works undertaken on the canal.

"We are restoring a 200-year-old canal to deliver environmental, economic and community benefits while caring for the waterway's unique heritage and wildlife environment with the utmost care and attention."