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Before work started plans were developed with Nottinghamshire County Council and Historic England to deal with any archaeological finds.
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Mr Wallace said the work was progressing well and they would be continuing to work in the town for the next few years."We're ready for any more discoveries as we carry out these vital improvements to the town creating our own history for Newark by leaving a lasting legacy," he said.
Nottinghamshire county council archaeologist Ursilla Spencer said the ditch is cut into heavy clay and would have been very hard to dig."This is the first tangible evidence of what Newark and its people went through 370 years ago, right under our feet," she said.
The NPCU will decide within 21 days of receiving notification of the council decision, which was expected before the end of this week.