The cost of demolishing and replacing a multi-storey car park has hit £2.5 million.

Fareham's Osborn Road car park will close in November making way for a new surface-level site with 139 spaces.

But it has now emerged the project's budget has soared from £1.96 million to £2.5 million.

Rising construction costs over the last 18 months has led to the inflated price tag.

The current multi-storey will now shut in November, later than the planned October closing.

Solar panels, along with associated batteries and CCTV, will no longer be installed in the new car park.

This is because the panels were more expensive than originally thought - and they pay back in energy generation will take longer.

Council documents said: "Four tenders were received for this project from local and regional contractors.

"All provided costs that were above our projected costs for the demolition and construction works.

"It was noted that the costs for the solar PV canopies were significantly above our expectations with the pay-back period being more than double the initial evaluation."

They added: "Previously it was programmed that the car park would close in October 2023 to allow preparation for demolition.

"We are now likely to encounter a short delay whilst this approval process on the budget is concluded and based on a favourable outcome this is now likely to be during November 2023.

"With most of the works taking place over the winter period it is likely that the new car park will be opened in Spring 2024."

The costs for demolishing the Osborn Road Multi-Storey and establishing the smaller surface car park will be covered by future Community Infrastructure Levy (CIL) income.

Borrowing may be used to bridge the financial gap, with loan interest paid for using coastal car parking revenues.

It is anticipated that it will take approximately three to four years to accumulate enough CIL income to offset the costs.

Councillors are due to discuss signing off the £500,000 increase in budget on Monday.