The loss of two Victorian villas does not outweigh the benefits of an enlarged Beaney Institute, councillors have ruled.

They have approved the £11million extension of the building in the city centre despite concerns about the design and scale.

Both the Victorian Society and English Heritage had complained about the proposed three-storey side addition in Best Lane which was branded crude and bulky.

In particular, the society said that two Victorian villas, currently used as a bed and breakfast, should not be demolished as part of the scheme.

The application, which was discussed by members of the development and control committee on Tuesday, had prompted 29 objections.

The council says it exhausted all other options to avoid the demolition of the villas but believed the benefits to the community provided by the enlarged museum and library outweighed the loss of the properties.

Work on the new extension is now expected to start before Christmas but archaeological investigation will be carried out before any building work is done.

Museum exhibits will start to be removed shortly and temporarily rehomed in other city museums.

KCC is expected to relocate the library to temporary premises in Pound Lane.

The Beaney is scheduled to re-open in 2011.