England’s fastest-declining mammal, the water vole, is among thousands of species set to benefit from a £25m scheme to restore “critical” habitats.

The government funding will be used to improve more than 3,300 hectares vital for “iconic” wildlife, also including butterflies, otters and dragonflies.

The government said the scheme would help it meet its target to protect 30% of land for nature by 2030.

But conservation groups warned the fund is “only a fraction” of what is needed.