Work has started on the £25m pedestrianisation of the north side of Trafalgar Square to create a traffic-free North Terrace linking the National Gallery and the Square via a central staircase.

Final details of the scheme, devised by mayor of London, Ken Livingstone and designed by Lord Foster and which saw the north side of the Square closing to traffic on Sunday 1 September, have been approved by Westminster City Council and include public toilets and an open air café serving light refreshments and drinks on the Square from 8am to 8pm. There will also be lifts providing wheelchair access.

The Heritage Lottery fund is financing a small proportion of the cost.

'Trafalgar Square is a world-famous landmark, but it's not as attractive as it should be,' said Livingstone. 'Work has already started to open up a new space in front of the National Gallery and the new facilities we are adding will enhance peoples' enjoyment of the grandeur and architecture of one of the world's most famous spots and give Londoners a public space to be proud of.'

He also claims that the regeneration of the Square will provide a boost to tourism, which currently brings in £8billion a year in London.

Charles Saumarez-Smith, director of the National Gallery, said: 'The scheme will revitalise the approach to the National Gallery and will enable us to extend our welcome to our visitors. The traffic-free area opens up a splendid vista from Trafalgar Square to the National Gallery and will greatly enhance the setting for William Wilkins' elegant façade.'

Once completed, the Square will host a programme of free cultural events, in an attempt to make it 'a livelier place on an everyday basis'.

The first stage of construction work will concern the rerouting of traffic around Trafalgar Square and the creation of the King Charles I roundabout at the junction of Whitehall, Cockspur Street and Northumberland Avenue. The project is due for completion in summer 2003. Details: GLA Public Liason Unit +44 (0)20 7983 4100