The cost of a new museum and hostel on the Carmarthenshire coast could rise by up to £1.7 million.

The county council-led project in Pendine has experienced difficulties, notably the contractor being placed into administration.

The £7.6 million scheme will comprise a Sands of Speed Museum, replacing the Museum of Speed, a 42-bed hostel, play area, car park and area for 10 motorhomes.

Cabinet members will hear more about the extra costs of this and other projects at a meeting this morning (October 25).

The cabinet report, referring to the Pendine scheme, said: “The increased costs can be attributed to the following: tender inflation, shortage of materials and supply complications, additional fees owing to the prolonged duration and need for additional design input, additional scaffolding costs to facilitate roof remediation works.”

The original tender for the Pendine project was based on 2018 prices.

The report said the worst-case scenario was a £1.7 million hike, but some of these costs are due to be recovered via insurance claims.

The original £7.6 million bill was split between the council, the European Union and the Welsh Government.

A new council five-year capital spending programme will factor in the extra cost.