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Lambeth council has forced TfL to slash its public funding for the Garden Bridge by two thirds.

In return, the council has agreed to resume negotiations over the proposed bridge designed by Thomas Heatherwick, which will be built by a Bouygues, Travaux Publicis and Cimolai joint venture.

The news removes one of the last major obstacles to the construction of the 拢175m bridge. Opponents had hoped the wrangle would hold it up for so long the whole project would be scuppered because of a logistics clash with the Thames Tideway Tunnel.

TfL said today that it will cut its 拢30m contribution to 拢10m. The Garden Bridge Trust said it would make up the shortfall by raising more private-sector funding, or by 鈥減aying back any TfL monies over a period of time鈥�.

The bridge was kick-started by two major handouts from public coffers - the Chancellor promised 拢30m, which was matched by Boris Johnson, as head of TfL.

The decision means that the negotiations over land for the bridge鈥檚 southern landing site, in Lambeth, will resume.

Council leader Lib Peck suspended negotiations in September saying not enough progress had been made in attracting funding from the private sector.

Today she issued a statement saying: 鈥淚鈥檓 pleased that Londoners are getting a better financial deal particularly at a time of austerity when all public sector organisations are being forced to make deep cuts to services.

鈥淲e鈥檝e been in tough negotiations with the Garden Bridge Trust and Transport for London and I鈥檓 pleased we鈥檝e successfully agreed a deal that will cut London taxpayers鈥� contribution towards the Garden Bridge by two thirds.鈥�

The chairman of the Garden Bridge Trust, Mervyn Davies, said: 鈥淲e are delighted to move forward with the project.

鈥淲e have been hugely successful in our efforts to raise funds from the private sector, with 拢85m pledged to date, and we have agreed that any of the committed funds from TfL spent over the 拢10 million will be treated as a loan. We are delighted the Garden Bridge can now progress and are grateful for all the support we鈥檝e had.鈥�

The Trust said it expects work on the scheme to start at the beginning of next year.