A Watford based quango will be abolished and re-formed, leaked government documents confirm.

Confidential papers obtained by the BBC reveal plans to abolish 180 qangos and merge a further 124 in a bid to save money.

The list, contained in a letter to government ministers, confirms plans for a major shake-up to British Waterways, based in Clarendon Road, Watford.

Under the proposals the organisation, responsible for the upkeep of Britain’s canal network, would be abolished as a non departmental public body (funded by the taxpayer) and re structured as a mutualised organisation, possibly a charitable trust or a co-operative.

The proposal was previously included in the Budget statement in March and “welcomed” by Trust chairman Tony Hales.