Speculation is rife the widening of Priory Crescent will be scrapped because of soaring costs.

Southend's Labour Party announced "insider sources" had said the Government was on the verge of vetoing the controversial scheme.

Its estimated cost, which has rocketed from £3million in 1999 to £21million today, is said to be too much at a time when cash for road building is in short supply.

David Norman, a senior Labour councillor, said: "This is good news for local residents, particularly all lovers of Priory Park.

"The Labour group continue to hold the view that the proposed road widening was of no value to the town's traffic problems and would damage a priceless local asset, which was bequeathed to the people of Southend in perpetuity as parkland.

"It would have been a complete waste of public money."

The leak was news to Southend Council leader Murray Foster, however.

He said: "We haven't heard anything one way or the other.

"If the Government were not to fund this much-needed scheme, at this point in time there are no alternative sources of funding."

The speculation was given a cautious welcome at Camp Bling, where protesters have been living in an effort to block the road widening for almost 18 months.

But Shaun Qureshi, one of the camp founders, said previous rumours had so far come to nothing.

He said: "If that is the case, it is fantastic news for all the people in Southend who have fought for so long to stop the road going ahead.

"But even if the funding is scrapped, we would need to look at our next steps.

"If we were to vacate the land, we would first need to get an agreement with Southend Council that no road building would go ahead. At the very least, we need to look at the timescales."

The road scheme has attracted protests from the start, but despite thousands of objections, it was approved by Government planning inspectors.

The campaign to get it scrapped stepped up a gear with the discovery of the Saxon King's remains underneath it in 2003.

However, if the road widening does not go ahead, it would be a major blow to plans for Southend United's new stadium, which would depend heavily on Priory Crescent for access from the A127.