Palace restoration put on hold

Kew Palace, which shut in 1996 for repairs that have already totalled £1.3 million, will stay closed indefinitely because of cuts in the restoration programme triggered by the tourism slump.

The 17th-century palace in the Royal Botanic Gardens, once home to King George III, was due to reopen in 2004. The distinctive exterior has already been restored, but the £3million renovation of the interior is now in jeopardy because the Historic Royal Palaces charitable trust (HRP), which runs the attraction, has seen its profits fall.

The trust also runs the Tower of London, one of Britain's most popular tourist attractions with about 2.5 million visitors a year. It has traditionally been the HRP's most profitable asset, but the number of visitors has plummeted by 30 per cent since the 11 September terrorist attacks.

The slump, together with the rejection of an application to the Heritage Lottery Fund, has forced the delay.