The UK government could be taken to court by the European Commission for permitting the carving of a giant white horse on a hillside in Kent.

Construction of the White Horse Millennium Landmark is already well under way, with turf having been removed, outline trenches excavated and chalk slabs scheduled to be laid soon.However, the area - near Folkestone - is a site of national importance for its chalk grassland plants and insects and the government could face large fines and even be told to restore the damaged habitat.

The environmental organisation, Friends of the Earth, made a formal complaint - supported by a number of other such groups - about the work, calling it a clear breach of European wildlife law. Planning permission for the scheme was granted in March 2002 by the then minister for Transport, Local Government and the Regions - Stephen Byers - in the face of advice from English Nature, the government's own wildlife watchdog.

The government now has two months in which to respond to the EC's formal notice against it.