COUNCIL chiefs are battling to save a long-awaited scheme to transform part of the New Forest coastline.

Plans to improve Hythe Promenade are hanging in the balance after the cost of the project soared to £873,000, leaving a funding shortfall of more than £230,000.

Yesterday, Hampshire County Council vowed to forge ahead with the project "if humanly possible".

But the scheme will be hit by major cuts and may be scrapped altogether if the council is unable to overcome the £82,000 shortfall likely to remain after the proposals have been scaled down.

Plans to turn the promenade from a "grim" cul-de-sac into a major attraction were unveiled last year.

County council bosses said the scheme would include an amphitheatre behind the Lord Nelson pub, an elevated walkway known as a broadwalk, and a footbridge linking the promenade with Hythe Pier.

But last month it was revealed that the project had been hit by spiralling costs.

The full extent of the shortfall facing the scheme emerged yesterday at a meeting chaired by county councillor Keith Estlin, executive member for environment.

A report to Cllr Estlin said tenders received by New Forest District Council had raised the cost of the scheme to more than £870,000.

The report added: "Possible causes include the many non-standard items in the design, the perceived difficulties of working over tidal water and the availability of civil engineering work in the region.

"In response to the shortfall, Hythe and District Parish Council has increased its contribution to £18,500.

"The district council is willing to contribute an additional £50,000, making its total contribution £277,500. Funding for the scheme would thus be increased to £688,000, but there would still be a shortfall of £185,000."

Now plans to install expensive paving could be scrapped as part of a major cost-cutting drive.

The report added: "Based on current prices an estimated saving of £103,000-£123,000 might be achieved, leaving a shortfall of £62,000-£82,000, which would need to be funded from other sources.

"In the event of the scheme not proceeding, remedial works will be required for health and safety reasons."

Improvements to the promenade are seen as vital to the future development of Hythe, and the county council is determined to salvage as much of the project as it can.

Graham Parkes, a Hythe councillor and chairman of Waterside Heritage, said the promenade has "huge potential".